Given the importance of your CIBIL Score for getting your new application for credit approved, it is crucial to ensure that you have a good score. New and affordable credit can come in handy when you’re paying your children’s tuition, building or renovating your home, have a medical emergency, or when you’re going on vacation or meeting other life goals.
There are various factors that account for your CIBIL Score, and a negative impact on these will decrease your score. This can not only lead to a rejection of your loan application but also get you a lower amount than desired at a higher cost. Thankfully, you can keep your score in check by taking the necessary steps. One of the simplest ways to stay informed about your score is by using the free CIBIL Score checking service that is available online.
You can access this on the official CIBIL website as well as via lenders who allow you to make a CIBIL Score free check. Once you know your score, you can get information on why your score is low by studying your CIBIL report. Read on to know how to address these issues and boost your CIBIL Score.
Make timely monthly payments
Ensuring you do not miss out on your monthly dues is the best way to have a healthy credit score. Your payment history and discipline account for about 35% of your CIBIL Score. When you check your CIBIL Score by PAN card or using other financial details, you also know if you have outstanding dues. With this information, you can carefully plan your repayment to improve your score. Whether you have a loan or a credit card, make sure you do not miss your EMIs or bill payments. Use digital reminders or auto-pay services to ensure you don’t miss deadlines. If you are missing payment due to a lack of funds, plan your credit better and don’t overborrow in the future.
Borrow a mix of credit options
The most experience you have with different types of credit, the higher your CIBIL Score will be. This includes collateral-free as well as secured loans and credit cards. The amount of secured and unsecured debt you have is also an important constituent of your CIBIL Score. Having too much-unsecured debt, such as personal loans or credit cards, can negatively impact your creditworthiness. Along with secured and unsecured debt, you should make sure that you have both short-term and long-term credit. All these points toward having enough credit experience, making your profile seem more reliable to lenders.
Pay heed to your credit utilisation ratio
How much credit you use up also affects your high or healthy score. Generally, you should not use over 30% of your credit limit. Using your credit card up to its limit each month can lead to a low credit score as this behaviour reveals the fact that you do not live within your means. To understand your credit balance and utilisation ratio, use the CIBIL Score check free service available on various platforms.
Fix errors in your credit profile
Credit rating agencies like CIBIL get information from financial intuitions, which may sometimes be incorrect or delayed. For instance, you may have paid off a loan in full, while your credit report still shows the loan as existing debt. By getting these mistakes rectified, your credit score can increase. Follow the simple process outlined to intimate CIBIL about errors, and your score will soon improve. This is where free CIBIL Score checking services can help you find errors in your report, so make sure to check your score and report consistently.
Remember that you may not notice any instant change in your CIBIL Score, which is why you need to be patient and consistent in your actions to improve your credit score. Inculcating the right financial habits is key to improving your CIBIL Score, including ensuring you build your credit experience, pay off debt early when possible and take loans or sign up for new credit cards only after careful planning. Another important step here is to update yourself on your credit score and read your credit report often.
CIBIL offers you a way to do a free CIBIL Score check by PAN card details that has no impact on your score. It allows you to check your credit score, see your credit report, and get exciting offers too! With free credit score checking, you can stay informed about your creditworthiness and take measures if needed. Try this today and take steps to boost your credit score by being responsible and diligent with your finances.