Many times loans are just rejected because of low CIBIL scores of the person who has applied for the loan, many times you don’t know that your CIBIL score is low until and unless it is informed by your banker while applying for any loan. If you will ask what a good CIBIL score is, then the answer is anything above 750 is good and if it is less than 350, it is considered poor.
Many times you wonder how to improve your CIBIL score. If you have encountered a problem because of your low CIBIL score and you want to increase your CIBIL score, then here are some steps you should follow to increase your CIBIL score. Before starting it, you should know that there is no quick fix for this, generally it takes time to improve your score.
Stop applying for new credit:
As your score is low, if you will apply for fresh loan, your loan will be rejected, once your loan is rejected, it will result in a fall in your CIBIL score. The more queries you put in a loan and your CIBIL score, more it will go down.
Use your credit card wisely
Credit card usage puts a lot of impact on your CIBIL score, so if you are using your credit card, don’t use the 100% limit, make an upper limit of 75%, don’t use more than 75% of the limit and make sure that you are making the payments on time. This will surely have a positive impact on your CIBIL score.
Try to consolidate all of your debts
Managing all of your debts, make it difficult to manage, so try to take on bigger loan and clear all of your smaller debts. It will make it easy for you to manage it as well as it will improve your CIBIL score also.
Keep a regular check on your score so that you can control it before it goes too low.
Find out the reasons for your low score
Once you came to know that your CIBIL score is less, try to understand the reasons for this low score, after finding out the reasons, try to solve them as soon as possible.
Use the loan for the purpose you have taken it, else it may reduce your CIBIL score.
Make sure you are following these steps so that you are able to maintain a good CIBIL score so that you don’t face any problem while taking any loan in future.