How to improve CIBIL score in the long term? Here are six strategies
CIBIL score in the long-term calls for consistent effort and responsible financial habits. These are some of the key strategies which we list out here. Thirty one-year-old Ashish Mehra recently discovered that his CIBIL score is only 590, so he asked around the ways to push his CIBIL score higher.
He received numerous suggestions and out of what he got, the most common ones included these: paying credit card bills on time, bringing debt level down, increasing the length of credit history and keeping credit mix diverse and so on. Pay bills on time: Payment history is a significant factor in your credit score. Late payments can have a negative impact, so always strive to pay bills on time.
Reduce debt: High levels of debt relative to your credit limits can lower your credit score. Aim to keep your credit utilisation ratio (the amount of credit you're using compared to your total available credit) below 30%. Length of credit history: The length of your credit history affects your score.
Avoid closing old credit accounts, as they contribute positively to your credit age and overall score. ALSO READ: Unsure about taking a secured personal loan? Here are the pros and cons Monitor your credit report: Regularly check your credit report for errors or inaccuracies that could be dragging down your score. You're entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year.
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