Applying for a loan is quite easy in this technological world; just sit back at home and apply for a personal loan, a home loan, a car loan, or any other loan. If you have a CIBIL score above 750, then you can easily get a loan from a bank or NBFC (Non-Banking Finance Company). But if you have a low CIBIL score and you need urgent money to solve all your financial crisis in a few hours, then it is likely you will get a loan at a higher interest rate. Also, sometimes a poor credit score can easily reject your loan application. How do I increase my CIBIL score from 600 to 750? In this short blog, we are going to discuss in detail, with the help of the points below, the CIBIL score and how to increase it. Let’s have a look at the points below and learn more.
How to increase my CIBIL score from 600 to 750?
Pay all credit card bills on time.
All borrowers must understand that paying all their credit card bills on time will make it beneficial for them to take out a loan and increase their CIBIL score. Avoiding late payments on bills will be beneficial for them and improve their credit scores. Set-up reminders or auto-debit of EMIs to avoid any late payments.
Do not check the CIBIL score often.
Checking your CIBIL score from different websites regularly can easily bring down your CIBIL scores. Avoiding checking your CIBIL score reports online is a soft inquiry. And these credit inquiries can never affect a person’s CIBIL score. Always remember that a hard inquiry about your CIBIL score can easily lower your CIBIL score. Never take out loans frequently, especially for credit card users.
Limit credit utilization.
According to data, limiting credit use to 30% will help to keep one’s credit score higher, but on the other hand, having a high credit score utilization of more than 40% could be harmful for a user’s CIBIL score. Credit cardholders can set their card limit to prevent credit utilization from increasing above 30% and save themselves from a low CIBIL score.
Never close old credit cards.
Another useful piece of information is that you should not close your old cards because those no longer in use will automatically be deactivated. However, an old credit card with zero outstanding loans is a blessing in disguise. Owning them can give you an impressive boost to your credit score. And these cards could be beneficial for them, instead of closing them, it will definitely improve your credit scores.
Stop applying for loans and cards after rejection.
A low CIBIL score can also lead to loan rejection. If you keep applying for a loan after rejection, then it will negatively impact your credit scores. A borrower should wait for a while and increase their account balance or clear other bills for a certain period of time. After this, you can resume applying for a loan after meeting the eligibility criteria.
Conclusion
There are several benefits to improve your CIBIL score to unlock financial opportunities by securing an instant personal loan at low interest rates. The above information is beneficial for you if you have a low CIBIL score. Every step you take towards increasing your CIBIL score can bring you one step closer to your financial dreams with the help of a higher CIBIL score.