Credit Score refers to a numerical expression that is based on the statistical analysis of credit files of an individual. This information is being provided by CIBIL now. The score of a CIBIL credit report ranges from 300 to 900 points. Now, even the banks consult CIBIL before providing their products like sanctioning a loan or any credit facility, to a customer as CIBIL credit report possesses a database of all the bank customers in India.
Therefore, to increase your credit scores, you just have to follow these simple steps:
- Get Your Credit Score Copy – You should take a copy of your CIBIL credit report and check your score every year to review it. Check it carefully and if you find any incorrect information or flaws. Then, you should immediately meet the concerned authority to resolve the issues.
- Resolve your issues faster – You should always try to resolve your issues as soon as possible. Let’s illustrate it with an example, suppose if you have paid off all your debt and this is not updated in your credit report, then you should consult your concerned bank first before directly approaching the credit agency as it’ll take less time to get the issue resolved, but if the bank is unable to solve your issue, then you should go to the credit agency after a one-month period.
- Timely payment of bills – You should pay all your bills on time that includes payment of loans, payment of credit card and premium of insurance cover. It is the best method to get a good CIBIL Credit report.
- Use your credit card effectively – Don’t discard or close your credit card but use it effectively on a daily basis and while you use your credit card, maintain it and pay the monthly bills on time. This shows your ability to use financial products over a long term period. Hence, this will increase your CIBIL score as it shows your capability to manage loans for a longer time period but if you close your credit card, it will not make contributions to increase your credit score. Hence it is necessary for professionals to have proper usage of credit ard.
- Maintain your credit to debit ratio – You should always try to maintain your credit to debit ratio as it is a key factor on which the credit report is based. Let’s take an example, suppose if you pay all your debt on time, besides this, your credit score will not increase because the net worth of your amount goes down.
- Resolve credit report issues faster – Quickly resolve any issues or misconceptions related to your credit report. You should approach the concerned bank and the CIBIL credit report to resolve the issues regarding credit report. Then, the Credit Report Systems bookmarks your issues and the credit bureau will not evaluate your credit report again. Hence, the Bureau will solve all your faulty issues. This will help to maintain your credit score.
Read Other Related Articles:
Three Tax Benefits of a Personal Loan | |
Tax Benefits of Personal Loans | |
Avoid being a Loan Defaulter | Avoid Bank Scams |
Aviva launches its new 13 products compliant to IRDA norms |