We understand the complexity of getting a home loan. Mintra helps you in simplifying the document process and negotiating with banks and provides professional advice. Read More.
CIBIL Score Upgrade: Improve Your CIBIL Score This Way
The Credit Information Bureau of India Limited (CIBIL) meticulously records the credit history of individuals with its member banks and financial institutions. It compiles data on payment statuses across all credit accounts, offering a comprehensive profile for its members.
CIBIL’s member institutions contribute this data to establish a track record for customers applying for loans or credit cards. Based on payment performance, individuals receive a specific score in their Credit Information Report (CIR) — the CIBIL credit score. The CIBIL rating reflects both the borrower’s past and current financial standing.
Ranging from -1 to 900, this score significantly influences a borrower’s rating. While the CIBIL score aids banks in decision-making, the final call rests with the bank’s officials.
A favorable score opens doors to benefits such as fast loan disbursal, reduced processing fees, lower interest rates, and higher credit card limits. Conversely, a low rating poses challenges in securing loans, often with higher interest rates and more restrictive terms.
Thus, maintaining a high CIBIL rating is of utmost significance for every individual, as it allows one to access desired financial facilities and overcoming potential hurdles.
How to Improve Your CIBIL Credit Score?
Enhancing the CIBIL score is not an easy task. However, with a guided path and correct information, one can surely improve their CIBIL score.
Though, before actually getting into the process of getting the CIBIL right, one should note and understand that it is not a convenient road and might require some time to reflect results.
Below we have mentioned a few CIBIL score improvement tips, which one can surely follow and are suggested by experienced professionals.
Timely Payments:
Ensure prompt payment of all loan installments, especially when managing multiple loans. Maintain sufficient balance in account between 1st to 10th day of month as most of the emis and Credit card payments are schedule between these dates. (You can consolidate your loans into single loan)
Financial Planning:
Develop a family financial statements to enhance loan eligibility, preventing rejections during processing. You can file income tax in the name of your spouse or parents for the same
Avoid Cheque Bounces/NACH:
Ensure none of your cheques/nach gets bounce due to insufficient funds, as such incidents negatively impact your CIBIL score. Always maintain 3 month EMI amount as bank account balance.
Credit Card Discipline:
Regularly pay the minimum amount due on your credit card and strive for full payments. Consistent card payments enhance your creditworthiness.
Strategic Credit Applications:
Avoid unnecessary credit card and loan applications. Only apply when genuinely needed to prevent overburdening yourself.
Settlements and Regular Payments:
Ensure that in case when you have current loan and EMIs, pay them on time. Do your best to avoid settlements and strive for regular payments to maintain a positive credit history.
Prevent Account Write-Offs:
In an attempt to improve the CIBIL score, one should understand that timely performance is crucial. And an account write-off should be avoided at all costs, as it has the power to severely affect your CIBIL score.
Connect with Our Financial Expert for Solutions:
If you or someone you know has a low credit score or is facing loan difficulties, Mintra Finserv experts are here to help. By simply getting in touch with us, our financial expert can provide you with speedy solutions and the correct consultation for the same.
Conclusion
To conclude the blog, we can say that a good and high CIBIL score is essential for everyone. And this is so because it has the power to make one eligible and non-eligible for credits and loans. With a bad CIBIL, handling extreme financial situations can be challenging. And on the contrary, with a good CIBIL score, the same is not just easy but also offers many other advantages too. Thus, one should always keep the importance of the CIBIL score in mind.
However, if, for unknown or unfortunate reasons, your CIBIL score has decreased, one can work to increase it by following the correct strategies and ways. Along with it, we also ensure to close and clear past loans, hence aiding the process.
And to acknowledge the true ways to improve the CIBIL score, one should consider getting in touch with a Mintra Finserv professional.
