Smart Tips to Improve Your CIBIL Score Quickly
CIBIL Score is an important aspect when it comes to applying for a credit card. The credit card issuers check your credit score before approving your credit card application to determine whether you can handle the unsecured debt or not. A score between 700-750 is considered to be a good credit score. However, individuals with no credit score/history can also apply for a credit card on meeting the other requirements. Secured credit cards and lifetime free credit cards are the best options to start your credit journey and also it will help you in building your credit score. Apart from this, you can consider other tips also for improving your credit score. Hereunder are the 8 smart tips to improve your CIBIL Score quickly.
Use the third-party ‘Buy Now Pay Later’ services: Individuals with no credit score can use third-party apps like Amazon and Flipkart to build their credit score before applying for a credit card. These platforms provide you with the ‘Buy Now Pay Later’ service that you can sign up for and use to build your credit score.
Take a personal loan: Another quick way to build your credit score is by taking up a personal loan and repaying it timely. It doesn’t have to cost you a fortune; you can take a personal loan of Rs. 10,000 or even below this depending on your requirement.
Apply for entry-level credit cards: If you do not wish to use the first two methods mentioned above to build your credit score and want to start directly with the credit card then you can choose to apply for the entry-level credit cards that are secured credit cards which are issued against the fixed deposit and lifetime free credit cards which do not have any joining and renewal fees.
Pay your credit card bills on time: After taking a credit card you must keep in mind that you can never take the risk of missing a credit card bill due date. To improve your credit score you need to clear your credit card bills time. For this purpose, you can register for auto-debit services.
Clear previous loans: If you have any pending loans then you must clear all of them as it will help in improving your credit score a lot. Keeping payment of loans pending can have a negative impact on your credit history. The quicker you repay the unsecured debt the quicker you improve your CIBIL Score, also the chances of credit card application approval increase.
Keep credit utilization ratio low: It is quite possible that you can overspend while using a credit card which can affect your credit score negatively. To avoid such situations you can set the spending limit reminder on reaching the limit you will be notified through an SMS and you can stop using your credit card recklessly. It is advisable to keep the credit utilization ratio up to 30%-40% only and not more than this. Keeping a low credit utilization ratio helps in improving credit scores quickly.
Restrict the number of credit cards: The more credit cards you own the more chances to default in credit card bill payment increases. It is advisable to limit your credit card numbers to that only where you can easily repay the outstanding balance without feeling any burden. You can manage fewer credit cards easily which will only be going to help you in increasing your credit score.
Check your credit report: You must keep an eye on your Credit report from time to time. If you find any errors or omissions then you can report them immediately because these mistakes can affect your credit history as well as your credit score. Checking the credit report regularly can help you build a good credit score.
Increase your credit card limit: Whenever you get a credit limit enhancement offer from the credit card issuer then you must not decline the offer. If you can manage a higher credit limit then you must apply for it as you will get more funds for utilizing. The more credit you take using a credit card and repaying it on time can help you a lot in improving your credit score.
To conclude, using the above-mentioned tips can surely help you in increasing your credit score. Important factors that help you are clearing your credit card bills timely and keeping the credit utilization ratio low. Another factor that can help in improving the CIBIL score is by selecting the right credit card by comparing them online and choosing the one that complements your spending habits and financial health. You can maximize the benefits of a credit card by using them wisely.
Comment down any other important tip that can help the readers to improve their credit score quickly.