What is the fastest way to improve your CIBIL score? Follow these 9 steps
CIBIL score (or credit score) requires consistent effort and responsible financial behaviour over time. For instance, Ajay Gupta, a Bengaluru-based software engineer in his early 30s, learnt that his Cibil score is 620, and now wants to improve it. He realised that this partly happened because he maxed out his credit card and most of his credit comes from credit card.
One of his friends told him that improving the score will take some time and requires a set of steps. Here we mention some of the steps that Ajay, like anyone else, can take to improve the CIBIL score quickly: Check your credit report: Procure a copy of your credit report from CIBIL or other credit bureaus in your country. Review it carefully for any errors or discrepancies that could be negatively impacting your score.
Pay your bills on time: Payment history is one of the key factors affecting your credit score. Make sure to pay all your bills, including credit card bills, loan EMIs, and utility bills, on time to avoid negative marks on your credit report. Reduce credit utilization ratio: Keep your credit card balances low relative to your credit limit.
Aim to utilize no more than 30 percent of your available credit limit. High credit utilisation can negatively impact your credit score. Avoid multiple credit applications: Each time you apply for credit, it generates a hard inquiry on your credit report, which can temporarily lower your score.
ALSO READ: A high CIBIL score offers 7 key advantages to borrowers Maintain a mix of credit types: Having a diverse mix of credit types, such as credit cards, loans, and mortgages, can positively impact your credit score. However, avoid opening new accounts just to improve your credit mix. Regularly monitor your
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