Want a better credit offer? Improve your CIBIL score!
New Delhi: Credit score, also called
Here are some important points to keep in mind to improve your credit score:
Timely credit payments
Failure to pay bills can reduce credit rating. Failure to meet deadlines can result in a significant decline as this indicates that you are not a responsible borrower. Since credit scores reflect credit history, a late payment could affect your report for years.
Remember that you should never stretch your expenses and only spend what you can repay before the billing date. Pay off your debts as soon as you can and control your card spending. Lower balances, which include unpaid dues on loans and low or zero balances on credit cards, can positively affect your credit score. It can also help you better manage your finances.
Keep your old credit card account
Switching to new credit cards because of lucrative offers isn’t always a good idea. You have to decide carefully if the new card gives you good reason to switch. If you have a credit card account that is prudently and well managed, it is better to keep it for a long time because the longevity of such an account can increase the CIBIL score. A good repayment history reflects your credibility as a lender.
Report and resolve inaccuracies
If you discover a discrepancy in the credit report, call for rectification if you have valid proof to back up your point. Disagreements and mistakes can happen, so you’ll want to have them rectified as soon as possible to avoid future problems. The recourse for rectification must be sent within a time limit set by the lender or the agency/financial institution. Ideally, you shouldn’t apply for new credit until old credit score disputes are resolved.
Use a secure card
Credit score can increase by using secured credit card offered by many banks such as ICICI Bank,