Credit scores are one of the essential factors that make borrowing easy and affordable. It is very important to maintain a good credit score if you want instant approval along with the best rate of interest in the market. This is because CIBIL score check is one of the screening factors used by loan providers to approve or deny loan requests. Individuals with a good credit score are considered creditworthy. It is important that you prove your creditworthiness in order to be eligible for an easy and affordable borrowing experience from your bank or non-banking financial companies. Credit building is a process that takes a lot of time but is completely worth it. With the help of a few credit activities that are very easy to conduct, individuals are able to improve their credit score with time. Here are some of the best ways in which you can improve your CIBIL score pretty fast.
Make on-time payments on your credit card bills
A credit card is one of the most important credit accounts that impacts your credit score. It is very important that you pay your credit card bills on time by the due date. If you miss the due date, it will actually damage your credit score as well as make it more expensive. By automating the payment option, you can always keep a clean record of your payments without missing them. Make sure that you pay your credit card bills on time before the due date. After you cross the due date, it will start reflecting as a default on your credit report, which will eventually drop your credit score. Learn how to get a business loan .
Pay your bills completely
When you use a credit card, you will find there are two options: the full bill amount and the minimum payment. It is not good to make a minimum payment even if the credit card issuer is offering the same. When you opt for a minimum payment, you carry forward the outstanding balance on your credit card, which exits the credit utilisation ratio. When the credit utilisation ratio exceeds the available credit limit, you start losing out on your credit score. It is very important that you pay your bills in full bill amount by keeping your expenses limited and managing funds immediately.
Keep your credit accounts open
Keeping your credit account open will always help in improving your credit score. It is important to understand that the longer the credit age, the better your credit score improvement will be. New credit accounts do not add any positive to your credit score, but the older the credit age, the better it is. You need to make sure that you keep your credit card and loan accounts open that have a clean track record and a long credit history. Such credit accounts will improve your score over time.
Do not apply for multiple loans
If you have gotten a rejection but are still looking for instant funds, you need to look for other ways other than applying for multiple loans. The hard inquiry that runs on your credit profile every time you apply for multiple loans will harm your credit score. It is important that you manage the funds from somewhere else, and in the meantime, you work on the loophole to improve your credit score.
Must Read: Improve Your Credit Or CIBIL Score In 7 Easy Ways
Wrapping up
A CIBIL score is important for a personal loan. CIBIL score check is easy and free when you use the Clix Capital website to check yours.
I am Ajay Singh, former Finance Advisor with more than 8 years of experience. I am a passionate trader, investment advisor and would love to help people in thier financial decision making.