CIBIL score holds a special place in an individual’s financial life. Consider this as your financial scorecard that determines your creditworthiness. Provided by one of the leading credit bureaus of India, CIBIL, this score generally ranges from 300 to 900. The higher your score will be, the higher will be your chances of getting a loan or credit approval and vice versa. But there is one common and important question that people often ask - How to Check CIBIL score? Many people don’t know how to check their score as it is one of the important factors in an individual’s financial life.
Well, the process to know your CIBIL score is quite easy. A customer only needs to visit the official website of CIBIL. On reaching there, you will need to fill a basic few details such as your name, email id, mobile number, PAN number, etc. On the basis of these details, CIBIL will send your credit report on your registered email address. This report will have all the details of all your financial transactions such as loans or credit cards, etc. But the most important thing that this report will be the CIBIL Score. Apart from this, people often want to know another thing - How to Improve CIBIL Score in an easy way? In this article, we will talk about this in detail so that you can improve your CIBIL score.
How to Improve CIBIL score of yours?
There are a few methods with which a customer can improve his or her CIBIL Score. We are telling you about each of them in detail so that you can understand better.
Timely Bill Payments:- One of the major reasons that a customer’s CIBIL score drops is the missed payments done by him or her. Several people have this habit to spend beyond their repayment capacity and end up being a default. That’s why it is important to spend only what you can pay later. Repayment history consists of 35% of the overall weightage of your CIBIL score. So, when you repay your bills on or before the due date, your score is bound to increase. Apart from credit card bills, utility bills payments also affect your credit score.
Credit Card Utilization:- One of the answers to the question of how to Improve CIBIL Score is to wisely utilize the credit card. It is always advised to only use 30% to 40% of the overall credit limit. The reason: if you keep exhausting your credit card limit every month, the lender may see you a credit hungry borrower. And you will also be able to pay your bills on time and your credit score will improve gradually.
Always Pay the Full Credit Card Bill:- A lot of individuals have this habit of paying the minimum due amount on your credit card bill that impacts your CIBIL score negatively. The minimum due amount is usually 5% of the total due amount. That’s why it is always advised to pay your credit card bill full and your credit score will only increase over time.
Avoid Debt Settlement:- Many people will tell you to make a Debt Settlement when you will ask them how to improve CIBIL score of yours. We would like to tell you this won’t help. When you settle your debts, it will reflect on your credit report as ‘Settled Debt’ and you may face difficulty in getting fresh credit in the future due to this. One of the efficient methods to pay your credit card bills is to opt for a personal loan at lower interest rates. Then pay your EMIs on time with which your credit score will improve.
Check your CIBIL Report Time to Time:- Sometimes, your CIBIL report may have some errors in your name, DOB, email id, etc because of which your CIBIL score may get affected. Always check your credit report regularly to see if there are any mistakes and report to CIBIL so that it can be corrected. These corrections will help improve CIBIL score of yours.
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