How to Improve Cibil Score

CIBIL Transunion Score is a 3 digit number which represents your credit history. The credit score is calculated on the basis of your credit report which contains your credit history. The CIBIL score ranges between 300 and 900. High score implies a good credit history. So, closer the score to 900 better it is. If you have score less than 600 its difficult to get loans and credit cards. The score higher than 750 will be good for your credit profile. 

How to improve CIBIL score quickly?

There are 9 different smart things you need to do for improving your CIBIL. 

  1. Set Reminders: Set reminders for your payments and be disciplined on repaying loans and creditcard dues. Every missing due is reported at CIBIL so it will impact your cibil score. 
  2. Limit Your Number of Loans: Too many loans or too many enquiries for loans indicate that you are credit hungry. So take loans one after another instead multiple loans at multiple banks at a time. 
  3. Have Right Mix: It is better to have a right combination of secured loans (example Home Loan, Auto Loan, Mortgage loan) and unsecured loans (example Personal Loan, Business loan, Credit Cards) If you have more number of unsecured only mean, You are bad at credit. 
  4. Dont give surety: Your friend may request you or your family member may black mail you emotionally or some thing other than that for surity. Dont give sureties and dont sign on any loan documents. In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments
  5. Review your Credit History: Do you know? Yearly once you get credit report freely. Set up a yearly reminder and check your credit report without miss. 
  6. Maintain Income Vs Credit Ratio: Do you know if your total monthly EMIs are more than 60% of your monthly income. Banks consider you as bad at credit.
  7. Have less number of cards: If you have more than 3 creditcards banks consider you credit hungry. So limit it to 1 or 2. In worst case 3. 
  8. More Credit Limit: If you utilizing more than 50% of your credit card limit, it will impact your credit score. So having bigger credit limit will save you in this case. 

Report Errors: You know banks sometimes report errors. If you didnt check it; It will keep continue. So if you found any error in your CIBIL report, Then contact related bank and ask them to rectify it. Dont forget to take NOC letter from bank after clearing loan.