Important Steps on How to Increase CIBIL Score

A credit score is one of the primary determinants which financiers consider when advancing a loan to a particular applicant. A credit score is a 3-digit number which represents the financial credibility of an individual or applicant. Thus, it is essential for every single individual to have a healthy CIBIL for loan approval.

Individuals need to possess a score above 750 when applying for unsecured credit facilities which constitute – personal loans, business loans, credit cards, etc. In regards to secured credit variables – loan against property and home loans – financiers might advance a loan with a score below that.

However, it is essential to consider how to increase CIBIL score even when applying for a secured credit facility to ensure approval and the best terms on the loan.

How to Increase CIBIL Score?

There are a few variables which are pertinent to credit score calculation. When you ensure you have these factors in order, you can gradually improve your CIBIL score –

• Repay Dues on Time – One of the key factors that help you to improve your credit score is your repayment history. When you make repayments of your credit dues on time, it allows you to increase CIBIL score.
• Continue with Old Credit Cards – When you continue with your old credit card(s), it ensures you have a lengthy credit score which reflects positively on your CIBIL. Henceforth, even though you do not use an old credit card, choose not to close it.
• Avoid Too Many Debts – When applying for a loan against property or any other form of a loan, decide not to apply with multiple financial institutions at once for approval. Each time you apply, the respective financier inquires about your CIBIL and too many inquiries affect your score as you are considered a credit-hungry individual.

These are the few ways you can increase the CIBIL score. Therefore, when you apply for any type of loan against property or secured credit facilities, ensure to possess a substantial credit score before application.