Date:26/07/2022

Prior to approving any kind of loan or credit card application, a bank will examine the applicant’s CIBIL Score. Therefore, before asking for a loan, ensure that your CIBIL Score is high. Credit scores are used to determine a person’s creditworthiness in the financial world. When your CIBIL score is low, it is more difficult to obtain credit from banks. A person’s CIBIL Score may be decreased if he or she is unable to repay a loan on time due to financial uncertainties or mismanagement.

Here are top 5 ways to help you improve your CIBIL score as quickly as possible!

Five Effective Suggestions to Enhance Your CIBIL Score

1. Ensure Responsible Credit Use

Credit cards are useful in so many situations. It provides us with sufficient credit for our needs, loyalty points, free discounts, and the confidence to travel cashless.

However, in order to avoid problems with spending control, you should restrict your credit card usage. Some promote the 30 percent rule, while others suggest spending 50 percent of your credit limit each month.

To be on the safe side, go ahead and use only upto forty percent of your limit. Your CIBIL score may increase if you use your credit card responsibly.

2. If you have credit card debt, address it.

A substantial credit card debt must be paid off immediately and should be your first priority. This is the most expensive form of borrowing, and a high debt results in defaults and late payments. As a result, your credit score will decline.

This is a key beginning step for future credit score maintenance and improvement. If the huge balance is the result of an emergency and you are unable to pay it, you have several options.

Reduce your spending and pay off the credit card first; then, acquire a loan that can be repaid over time to save money on interest; and last, if you need a short-term loan to help you overcome this obstacle, you can even opt for a gold loan.

3. Acquire a gold loan and pay it off

Yes! You read that right, one of the easiest ways to increase your CIBIL score is to acquire a gold loan and then pay it off. This timely payment of gold loan will reflect positively on your account and help you increase your score without any hiccups.

Since the interest rate on gold loans is lesser comparatively to other kinds of loan and credit cards, repayment will be relatively easier. You can even opt for a gold loan to pay off credit card debt, personal loan debt and in turn spike up your CIBIL rating. Connect with us for any Gold Loan enquiries.

Avoid Multiple Credit Requests in a Short Amount of Time.

Too many loan and credit card queries in a short amount of time create a negative impression. You demonstrate a credit-hungry attitude by applying for loans from multiple lenders.

To prevent your credit score from plummeting, you must stop applying for multiple credit cards and loans in a short period of time.

Pay your EMIs on Schedule

Maintaining current financial obligations is vital. Please ensure that your account is paid in full and well in advance of the due date to prevent any EMIs from being returned unpaid. The key to achieving a high CIBIL score is timely payment of all EMIs and outstanding balances.

If you default on your loan, you must immediately contact your lender and pay the total amount due, plus any applicable late fees or penalties.

Takeaway

You may implement these suggestions into your daily life and see your credit score grow over time. Important to remember is that performing these steps will not result in an immediate increase or decrease in your score. After using these measures, you can anticipate an increase in your credit score within six to twelve months.