Faced a financial setback? Here are 6 steps to follow to improve your CIBIL score
CIBIL score. So, you should apply for new credit sporadically and only if necessary. Besides, you should begin by procuring a copy of your credit report from CIBIL or any other credit bureau.
It’s important to review it carefully to spot errors if any. Additionally, you should regularly monitor your credit report to track your progress. ALSO READ: Can you improve your CIBIL score in a month? MintGenie answers Pay bills on time: Payment history is a key factor in your credit score.
Make sure to pay all your bills, including credit card bills, loan EMIs, and utility bills, on time. Consider setting up automatic payments to avoid missing deadlines. Reduce credit card balances: High credit card balances relative to your credit limits can harm your credit score.
Try to pay down your credit card balances as much as possible. Aim to keep your credit utilisation ratio below 30 percent. Don’t close old accounts: Closing old credit accounts can reduce the average age of your credit history, which may negatively impact your score.
Instead of closing them, consider keeping them open and using them responsibly. ALSO READ: How to improve your CIBIL score using gifted money? Here are 3 ways Diversify your credit mix: Having a mix of different types of credit accounts, such as credit cards, loans, and a mortgage, can positively impact your score. However, only take on new credit if you can manage it responsibly.
Communicate with creditors: If you are struggling to make payments, consider reaching out to your creditors to discuss possible repayment plans or restructuring options. Some creditors may be willing to work with you to help you manage your debts. Use credit wisely: Be cautious with your credit usage and only borrow what you can
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