How to improve your CIBIL score?

Here are 5 easy tips to help you.

Tip 1 - Convert Settled to Closed Status:

• Defaulted on your loan or Credit Card and did a settlement with the bank? In your CIBIL report ‘Settled’ is considered as you have NOT PAID your dues completely. It has a negative impact on your CIBIL Score.
• Pay the full amount to the bank and get the status of the account changed from ‘Settled’ to ‘Closed’. It will help improve your CIBIL Score.

Tip 2 - Make Regular Payments of EMIs and Credit Card dues because it carries 33% weight in your CIBIL Score:

• Remember CIBIL Score tracks late payment of Credit Card bills, EMIs not paid, etc.
• For Credit Card bill payments, choose auto pay option or set a reminder on your mobile.

Tip 3 - Create Credit History by Choosing Different Forms of Credit (borrowings)

• Like secured & unsecured loans across shorter and longer tenures with regular repayments.

Tip 4 - Continue using your old Credit Cards & pay your bill in full, on time:

• It will help you build a strong and lengthy credit history which will help you increase your CIBIL Score in the future.

Tip 5 - Avoid Exceeding 50% of Your Credit Card Shopping Limit:

• If you have a very low credit limit on your Credit Card, it may be a good idea to ask for a limit enhancement.

Remember, a high CIBIL Score will help you get access to loans and credit whenever you need it the most. After you’ve followed the tips, it will take around 6 months to a year for your credit score to improve. Start rebuilding your score today and work towards your financial goals and dreams.