CIBIL Score: If your credit score has deteriorated due to some of your mistakes and now you want to increase it, what will you have to do and how much time will it take to increase it? Know your meaning here.
How to Increase Cibil Score: If you are going to take a loan, then banks first check your credit score. Credit score is also called CIBIL score. In a way, credit score is like your report card, which tells you how your repayment history has been in previous loans. CIBIL score is determined between 300 to 900. Generally, CIBIL score up to 750 or above is considered good. But sometimes due to some of our mistakes the credit score gets spoiled.
If you have a bad CIBIL score, it becomes difficult to get a loan from the bank and even if you get it, you may have to pay a lot of interest. Therefore it is very important to maintain a good CIBIL score. Suppose your credit score has deteriorated due to some of your mistakes and now you want to increase it, what will you have to do and how much time will it take to increase it? Know about this here-
First understand which mistakes spoil the score
There can be many reasons for deterioration in CIBIL score like – not paying EMI on time after taking loan, not settling loan, not paying credit card on time, not maintaining credit utilization ratio etc. Apart from this, if you have taken a joint loan or you are someone’s loan guarantor and in such a situation, your joint account holder or the borrower for whose loan you have become the guarantor commits any mistake, then your CIBIL is also adversely affected.
In how much time can you increase your credit score?
If your credit score has deteriorated and you want to improve it, then first of all understand that improving credit score is not a one-day task. For this you will have to have some patience because it improves gradually. It may take at least six months to 1 year for your bad credit score to improve. If the score is very low then it may take more time to improve. That is why you are advised to maintain your CIBIL score in advance and keep checking it from time to time. So that if it decreases, you can increase it by taking necessary steps in time.
Ways to improve credit score
- If you have taken a loan then pay the EMI on time.
- If you are a credit card user then do not spend more than 30 percent of its maximum limit.
- Pay credit card bills on time.
- Do not take unsecured loans frequently and frequently.
- Become someone’s loan guarantor very thoughtfully.
- Also take the decision of taking a joint loan carefully.
- If the loan has been settled, get it closed as soon as possible.
- If you have never taken a loan, then take a small loan and repay it on time, so that your credit history can be built.
