CIBIL score on a decline? 6 key steps to follow to improve it
credit score such as length of credit history and credit utilisation ratio. Additionally, if you are struggling to make payments, consider reaching out to your creditors to discuss alternative payment arrangements or hardship programs. Your bank may be willing to cooperate with you to avoid negative reporting to credit bureaus.
ALSO READ: How to prevent impact of frauds on your CIBIL score? Here are 5 steps You should keep a close eye on your credit report and score by regularly monitoring them. This enables you to quickly identify any issues or discrepancies and take appropriate actions to address them. Review your credit report: Obtain a copy of your credit report from CIBIL and review it thoroughly.
Look for any errors, inaccuracies, or fraudulent activities that may be affecting your score negatively. Pay bills on time: Making late payments can have a significant impact on your credit score. Make sure to pay all your bills, including credit card bills, loan EMIs, and utility bills on time to avoid any negative impact on your score.
Reduce credit utilisation: Aim to keep your credit utilisation ratio below 30 percent. This means using only a small portion of your available credit limit. High credit utilisation can indicate financial strain and negatively affect your score.
Avoid multiple credit applications: Every time you apply for credit, it triggers a hard inquiry on your credit report, which can temporarily lower your score. Minimise credit inquiries by only applying for credit when necessary. ALSO READ: From lower interest rates to strong bargaining power, 5 long-term benefits of high CIBIL score Diversify credit types: Having a mix of credit types, such as credit cards, loans, and mortgages, can positively
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