Best Ways to Improve your Low CIBIL Score

Hence, follow the best ways to improve your low CIBIL score

Pay Dues on Time

An EMI date is predefined, so you already know the repayment date. However, if you still miss the EMI or pay late, it affects the CIBIL score negatively.

Maintain a Healthy Credit Balance

Managing multiple unsecured loans at one time can affect the CIBIL score, bringing it down. Instead, maintain a balance of secured and unsecured loans such as home loans and personal loans.

Control Credit Habits

If possible, curb your habit of excessively relying on credible sources. Apply for new loans in moderation.

Prioritize Old Debt

Repay your old debts before applying for new loans. The interest and number of loans will keep piling up that will directly affect the credit score.

Check Credit Score at Intervals

Annually, it is a good habit to review your credit score to avoid discrepancies, if any. 

Avoid Joint Accounts

Any default behaviour by your joint account holder can directly affect your CIBIL score. Holding individual accounts is always better than partner accounts.

Go for a Longer Loan Tenure

Choosing a longer loan tenure of more than 6 months, reduces the EMI amount and makes the repayment easier. This maintains the regularity of EMI payments every month and keeps the credit score high.

There’s no specific period for how long it will take to improve the CIBIL score, it depends upon the consistency of managing the credits well and paying dues on time. Financial institutions are inclined towards borrowers holding a stable CIBIL score and the loan approval process has no hurdles with a high credit score.