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How to Have a High CIBIL Score?

Your CIBIL score is used by banks to determine if you are creditworthy and, as a result, whether you are eligible for a loan or credit card. Your credit score may have an impact on your capacity to satisfy your financial obligations. Your credit score affects your ability to obtain a credit card or a loan. The higher your credit score, the more likely you are to be approved. Once your loan application is approved, your CIBIL score is used to decide how much money you can borrow. Banks use your CIBIL score as a benchmark for all credit ratings. Your credit score determines your creditworthiness for the amount of loan you are requesting from the bank. The CIBIL score cannot be improved overnight. However, there is no simple solution to improve your score. You must be patient, change your payment habits, and be self-disciplined to realise the results and benefits.

The advantages of having a strong CIBIL score will last a lifetime if you maintain it. A low CIBIL score, on the other hand, has a number of disadvantages. Even if your credit score increases, banks look over your entire credit report for any irregularities. If you’ve ever missed a payment on a loan or credit card, it will appear on your credit report, and banks may view you as a high-risk borrower. When it comes to improving your credit score, there is no one size fits all solution. The lower your score, the longer it will take you to finish the task. It will take 4 to 12 months to get 750 if your score is between 650 and 700. If your score is less than 650, it will take longer. To improve your CIBIL score, you must be patient and learn numerous tactics that will help you.

Common Methods to Increase CIBIL Score

Maintain Good Repayment Habits

Making on-time credit card and loan EMI payments can enhance your repayment history, which can help you boost your overall CIBIL score. Your CIBIL score will drop if you miss a credit card or loan EMI payment. As a result, if you want to raise your CIBIL score, you should focus on improving your repayment habits. It also helps you improve your overall repayment habits, allowing you to become a better credit borrower. It also makes it easier for future lenders to give credit to you.

Keep you Old Bank Accounts

The vast majority of consumers believe that closing old accounts will boost their credit score. This is a misconception, and maintaining an old account will help you raise your CIBIL score. Older accounts are preferred by credit agencies because they demonstrate a long-standing relationship between the borrower and the lender or bank. The type of relationship you have with your present bank will also influence this. If you have a good relationship with your current bank, maintaining an old account will be easy.

Do not use Full Credit Limit to maintain CIBIL Score

The credit utilisation ratio is an important factor that banks examine when calculating your Credit score. Maintaining a credit utilisation rate of less than 30% of your credit limit will help you maintain a strong Credit score. When calculating your Credit score, banks look at your credit utilisation ratio. Maintaining a credit utilisation rate of less than 30% of your credit limit will assist you in maintaining a high Credit score. Reduced credit card monthly repayments arise from using less credit, making it easier to make timely payments and boosting your credit score. It is, nevertheless, vital that you have a substantial credit limit. Using less credit, in addition to having a larger credit limit, implies that you do not require as much credit and will be able to make regular payments.
Increasing your credit score does not guarantee that you will always have a good credit score in the future. You need to maintain these factors in order to keep your Credit score high. Having a high credit score can also bring a lot of advantages with it. If you have a high CIBIL score, you select and apply from the best credit cards in India. Moreover, if you are a farmer and have a good CIBIL score, you can apply for the Kisan Credit Card. KCC is a credit card launched by the government of India to empower the farmers of our country.

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