Increase CIBIL score

Increase CIBIL score

It is advisable to have a credit score of 750 or above to avoid the possibility of loan rejection. Here are some tips on how to increase your score.

Increase CIBIL score

Why should I increase my score?

Your CIBIL score, or any other credit score, is the first impression lenders have of your credit behaviour. If it is low, it serves as a warning signal of your credit behaviour and there is a high chance that your loan or credit card application will not be approved. It is a good idea to make sure that you create and maintain a good credit score so that you are free from the tension of being rejected when you urgently need a loan.

How can I improve my score?

It is advisable to have a credit score of 750 or above to avoid the possibility of loan rejection. Here are some tips on how to increase your score.

  • MAKE PAYMENTS ON TIME: Your payment record is the most important factor in calculating your credit score and can form up to one-third of your score. It is very important to make sure that you make all payments on time and in full. Even a single missed or delayed payment can affect your score.
  • DO NOT EXCEED 50% OF YOUR CREDIT LIMIT: For example, if your credit limit is Rs. 1 lakh, limit your monthly spending to less than Rs. 50,000. If you consistently exceed that limit, it reflects lack of spending discipline and will negatively affect your score. Keeping within this limit will help increase your score.
  • CHECK YOUR CREDIT SCORE ON A REGULAR BASIS: You might think that you have a good credit score, but there might be other factors, like administrative errors or fraud, that might be dragging down your score. For instance, you might have paid your loan in full but it might still be shown as outstanding due to a reporting mistake. Check your report and immediately notify the bureau of any mistakes or suspicious activity so that it is rectified right away. Eliminating these errors will help improve your score.
  • MAINTAIN AN OPTIMAL MIX OF LOANS: Maintain a balance between secured (home/auto/gold) loans and unsecured (personal) loans. Having a higher proportion of secured loans has a positive effect on your credit score.
  • AVOID APPLYING FOR MULTIPLE LOANS IN A SHORT TIME PERIOD: If your loan has been rejected once, be patient - don’t apply immediately to multiple other banks. Each time your loan or credit card application is rejected, it affects your score negatively, so the more times your loan is rejected, the worse your score becomes. When lenders receive an application they access your credit report through an ‘enquiry’. Too many enquiries without corresponding loan approvals leads to a drop in your score. It is advisable to first improve your score and your credit-worthiness before applying again for a loan.

Financial concerns are a major stress point for many people. A poor credit score only increases financial problems as it severely limits your access to loans. Worrying doesn’t help you to increase CIBIL score. Start taking steps to improve your score and rebuild your credit health. It is possible to undertake all these steps above and see a positive effect on your credit score. All it requires is some commitment, financial discipline and patience and you will enjoy tension-free access to credit in the future.

Comments (1)

Commented on 29, December , 2015

it is heartening to understand that my cibil score is more than 750. If this is considered for sanctioning loans and advances, I thank the creditmantri.com for the evaluation.

Check your Free Credit Score Online

As part of our efforts to make the end consumer services affordable and available at price points which are favourable to the customer, CreditMantri may receive fees / commissions from lenders.

CreditMantri ™ is a registered trademark of CreditMantri Finserve Private Limited. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Mantri are the property of their respective trademark holders.

CreditMantri was created to help you take charge of your credit health and help you make better borrowing decisions. We support customers with every kind of credit profile - those who are new to credit and have a minimal or nonexistent record; those who have a problematic history; and those who already enjoy a healthy profile. If you are looking for credit, we will make sure you find it, and ensure that it is the best possible match for you. How do we help you? We enable you to obtain your credit score instantly, in real time. We get your Credit Score online and provide a free Credit Health Analysis of your CIBIL or Equifax report. Based on the analysis, we help you discover loans and credit cards best suited for your credit profile. We help you understand your Credit Information Report (CIR) and offer practical and personalized recommendations, tailored to help you improve your score and become loan-eligible. We are a one-stop shop for all your credit needs. We make it easy for you to browse through and compare the various financial products on offer on the market; access our free and user-friendly online tools; and finally, enjoy a stress-free application process with quick approvals. We ensure that you have a high probability of being approved for the loan or credit card you apply for as we only suggest products pre-matched to your profile. We help you avoid loan rejection by carefully determining your eligibility and matching you with the right lender/product. We achieve this with a cutting edge combination of data science, technology and credit management that ensures that both lenders and borrowers have a transparent common platform to make their decisions. We treat your data with the utmost confidentiality and will never share or sell it to anyone. That is our CreditMantri guarantee. Our dedicated and best-in-class customer service will go the extra mile (or two) to support you on every step of your credit journey. Our 4,20,000 happy customers are our best testimonial.

CreditMantri is India’s No. 1 site for Credit Analysis and Free Credit Score Online. Let us help you take control of your credit goals and unlock the door to your financial freedom.