Check Your Credit Report
You should regularly monitor your credit reports as that can help you understand your creditworthiness & help you to take steps in correcting any errors if need be.
Lower Your Credit Utilization Ratio
Try not to use your credit card for every payment. As a rule of thumb, keeping a healthy credit usage ratio is beneficial. For this, less than 30% of the entire allowed limit must be used.
Avoid Closure of Old Accounts
Older accounts demonstrate a long-term relationship and connection with the lending institutions, which the credit bureaus value. This contributes to a higher CIBIL score.
Keep a Track of Your Payments
The most important factor in raising your CIBIL score is having a better payment history. Make sure you pay your bills and clear your debts in time to avoid negative impact on your credibility.
Pay EMIs on Time
It’s always a good idea to not miss paying an EMI as that may adversely affect your credit score. Missing even a single payment may lead to penalty charges and a steep fall in your score.
Why is CIBIL Score So Important?
There is a certain amount of risk involved in lending funds. So it becomes absolutely important for lending institutions & financial organizations to gauge the repayment capacity of an individual before lending money. This is where CIBIL score come in.
The CIBIL Score is perhaps the biggest determinant of your credit worthiness when it comes to availing personal loans. Hence maintaining a good score also becomes vital as it acts as a first impression in front of the lenders.
By following these easy to follow smart tips, you can easily improve & maintain a good CIBIL score and avail personal loan without any hassles. Also, remember that these changes will not lead to an immediate change in your score but surely bring-in favourable impact on it in due time. You’ll have to take conscious steps to maintain & improve your CIBIL score overtime & make it a habit to increase your score. Home Credit brings you quick & affordable variety of loans that you can avail 100% online. Not only the process of availing loan simplified but the completely online process helps save on time as well. So, don’t wait, start your credit journey today!