How to improve CIBIL Credit score?

A Bad CIBIL score can be a nightmare for people who need money on urgent basis due to any reasons. Whenever you apply for a loan all banks compulsorily verifies CIBIL score of the applicants to check the creditworthiness of individuals. If the CIBIL score is less, it simply means the applicant is credit worthy enough to get the loan because of his past actions.
Your CIBIL score is a 3 digit number that ranges from 300-900 on the basis of how you manage your credit cards and loans.
1.Do not delay or miss any payments:
When it comes to credit card, it is highly recommended that you do not come too close to your due date. Your track record of loan and card payments can make up almost one third of your score. It is the most important factor in calculating your credit score. Do not delay any payments, if you are finding it difficult to pay EMI talk to your banker and restructure your payments. Even if you miss on one payment, it can adversely affect your CIBIL score. So, pay your dues on time and do not wait for the last due date or just pay the minimal amount.
Aim to make your payments at least 5 working days before due date and 10 days if you are planning to pay by cheque.
2.Check your Credit Report:
Keep a regular check on your credit report. This will bring to your notice any defaults or delayed payments which has brought down your score. Sometimes, there are some unnecessary records which are dragging down your score, For example , a loan amount due which is already cleared, so when you check your credit report identify these errors and you can report them.
Similarly ,it also helps you to know if any suspicious activity or fraud.Ensure that you file them and get it resolve and you will see immediate increase in your score.
3.Don’t keep applying if you get rejected
Too many application in a short span of time can adversely affect your CIBIL score. So, if you get rejected from one bank then immediately do not go to the other bank for loan, instead wait and work on your credit score. Whenever you apply for a loan or credit card and it gets rejected, it is recorded so even the other banks comes to know you were being rejected. So, the best thing is to wait rather then increasing your rejection score.
4. Keep the oldest credit card account
If you are in the impression that old credit card should be deactivated then you are wrong. The oldest card with a good credit card history is a boon to your score. You don’t know the impact of the old credit card and so you think it’s of no value.   It gives the much-needed longevity to your CIBIL score, which is one of the factors that lenders consider while evaluating your application. Keep such good account with you as long as possible because it serves as a solid repayment history.
5.Get a secured card
If you have a very bad  CIBIL score to get a credit card, try getting a secured credit card from leading banks such as ICICI Bank, Citibank, SBI, Axis etc. They offer a secured credit card against a fixed deposit of nominal amount. If you repay your balances on time, it will increase your CIBIL score quickly.
You need to have a good CIBIL credit score if you want a loan. So follow  a disciplined spending and repayment habits to get a good CIBIL credit score.
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