Want a better credit offer? Improve your CIBIL score!

Cibil Transunion Credit Score

New Delhi: Credit score, also called CIBIL is a key factor for lenders when deciding on applicant eligibility and the applicable interest rate before approving loans and issuing credit cards.

CIBIL — Credit Information Bureau (India) Ltd – the score is a three digit number, ranging from 300 to 900, which determines a person’s creditworthiness. According to RBI, all lenders must verify the CIBIL score of each loan/credit card applicant at the time of assessment. A low CIBIL score reflects poor credit management skills.

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.

Lower balances

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, CitibankSBI, Axis Bank etc These cards are issued against a fixed deposit of a nominal amount. Timely balance payments can increase the CIBIL score. So if, due to certain circumstances, you are in default, your bank will immediately liquidate the fixed deposit or other deposits against which you received the card and the debt will be repaid. This option is ideal for those with low credit scores or those with no credit history. It can improve your credit history and gradually increase your credit score.

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