CIBIL, short for The Credit Information Bureau (India) Limited, is responsible for providing credit reports and scores for each individual. This data is vital for anyone seeking loans or financial assistance, and we will discuss that in the subsequent sections.
In simple terms, a CIBIL score is a 3-digit number associated with an individual, representing how you have handled your credit. Now credit can be in many forms, such as house loans, personal loans, EMIs, or credit cards.
The CIBIL score reflects how regularly you have been paying them back and whether you are eligible for further loans.
This gives the CIBIL Score great importance in applying for loans and credit cards. We at Money View will check through your CIBIL score as an eligibility criterion before deciding whether you are trustworthy or not for the loan. Thus maintaining a good credit score is a must for anyone and everyone.
Generally, for most use cases, a CIBIL score of 700-900 is considered a good score. Thus one must always keep track of their CIBIL score and try to improve it if it falls below this threshold.
Below we have mentioned some of the benefits of maintaining a good CIBIL score.
The higher your credit scores, the higher the chance a bank or NBFC will approve your loan. This is because a higher CIBIL score will show your trustworthiness in terms of repayment of loans, and it will allow us to disburse the funds with ease.
Another benefit of keeping a high CIBIL score is getting lower interest rates while opting for a specific loan. This will depend on the type and nature of the loan, but maintaining a good credit score improves your chances of availing of such opportunities.
A person with a good credit score will find their loan applications accepted readily and less quickly. Taking loans can be a lengthy and tedious process, so anything to quicken up that process is a bonus.
You can avail further lucrative discounts on processing fees and other charges if you have a higher CIBIL score.
Thus in this segment, we have understood why maintaining a good CIBIL score should be a priority for everyone. It is apparent that a credit score helps you gain trust with your lenders and provides you with added benefits.
So how does one go about building and maintaining a good credit score? To answer this in simple terms, we would give you three pretty basic and simple tips to follow, which will allow you to maintain your credit score.
Always stay disciplined: This is the most critical criterion. We always suggest that you pay back your credit card bills and your loans as per the specified timings. This helps in maintaining a good score.
Keep a low credit utilization ratio: We would suggest that you never exceed 30% of your total credit card limit. This will go a long way toward creating a healthy credit score. If you are finding it difficult to cut down your costs, it is recommended to avail of a credit card with a higher top limit. This will help in fulfilling this 30 percent criteria.
Keep a variety of debt: It is highly advised to keep a combination of secured and unsecured loans. This will keep your CIBIL score up. An example of a secured loan is a home loan, whereas a credit card is an example of an unsecured loan.
Now that you know these secret mantras, you can go out there and maintain a good credit score so that when you are in dire need of a personal loan, Money View can come to your aid quickly.
Well, now that we have talked about how one can maintain a good credit score, we hope you will be able to do the same. In case due to some unforeseen reasons, there might be a dip in your CIBIL score. In such cases, you might need to understand how to increase CIBIL score from 600 to 750 and get back your creditworthiness!
Don’t worry; we have got you covered on that front. Here we have mentioned some speedy and effective ways to raise your credit score above from 600 to 750 instantly. However, while disbursing the personal loans, Money View acts as one of the most desired solutions as it offers loans to individuals with scores as low as 600 or nearby.
Repay all the dues
Removing the dues can go a long way in improving your credit scores. One must remember to pay back all the dues in the stipulated time. Any delay in paying your bills, loans, and EMIs can accumulate interest charges, which will degrade your CIBIL score while also increasing your debt.
If you have trouble keeping up with the payment dates, maybe it is time for you to maintain track and set specific reminders to pay the same. Small steps like this will take you a long way and help you realise how to increase CIBIL score from 600 to 750.
Regularly checking your credit reports
It is always said that keeping track of your money is the best way to handle money.
Thus make it a habit to track your credit score regularly. There are two significant reasons to do so; it will help you identify the bad credits or dues that play a part in reducing your score.
Secondly, it will give you a report in which you will be able to identify any technical glitch that could have occurred on the bank’s side. This is vital to know and can be rectified promptly if noticed early. This is one of the sure-fire ways when wondering how to increase CIBIL score from 600 to 750.
Managing your credit cards
One should be very careful while using credit cards. Credit cards have their importance and can be very powerful if used correctly. Not using your credit card can also adversely affect your credit score.
Similarly, extending the 30 percent limit, as we mentioned earlier, can also reduce your credit score. You should plan as per your requirements and choose your card accordingly.
Increasing your credit limit
To counter the 30 percent problem, we suggest you go through the different credit cards provided by your bank and choose one with a higher ceiling as per your requirements. Also, it is advised to pay your bills before you make subsequent payments using your credit card. This ensures that you meet your deadlines on time.
Always mention your good credit records
Till now, we have understood that CIBIL is a record of your past credit behavior. Thus it is extremely important that you use the outstanding loans or credits paid off in due time on those sheets.
Thus keep those accounts active in which you have repaid loans. This increases your credibility and improves your trustworthiness in front of the lender.
Do not take multiple loans
Do not take multiple loans unless there is an emergency. It is always advised to pay off one loan before taking another one.
A person taking multiple loans provides the impression of an unreliable person. This will affect your CIBIL score. Thus, one should pay off their loan before taking another one.
Try not to apply for multiple loans at the same time
We understand that applying for multiple loans and credits will improve one’s chance of success in getting a loan. But this hurts your credit score and the lender.
Every time you apply for a credit line or a loan, there is a hard inquiry on your loan. This is shown on your credit score for two years. Thus, multiple hard inquiries in such a short period will harm your credit score.
Also, if one of your loan requests gets disapproved after a hard inquiry, it can be catastrophic for your credit score.
Try to choose different types of credits
You need to understand that as bad as it is not to pay the credit card bills, not owning a credit card also comes with its problems. A person who has never used any credit will generally have a lower CIBIL score, which will create difficulties in obtaining loans.
Thus it is generally suggested to have a mixed bag of loans in your portfolio ranging from long-term to short-term personal loans. This will help you build up your credit score and help you manage money effectively.
Finally, be patient
A credit score is something that one needs to work over a considerable period. Thus do not expect your score to change overnight. Follow these simple and easy tricks to ensure that your credit score remains in the safe region of 700-900.
Also, these hacks will help your credit score bounce from 600 to 750 within an instant!
Constant monitoring and taking the correct steps at the proper time in paying off debts and credit card bills will work like a charm in raising your credit score.
Well, now that you know everything about getting your credit up to date as per the minimal requirements, we at Money View would gladly serve you with quick and easy personal loan solutions.
We offer quick and easy-to-apply personal loan facilities, disbursed within 24 hours of applying. Thus feel free to read about the interest rates and the eligibility criteria before applying for a personal loan.
Thus always remember that managing your credit is in your own hands. It takes minimal yet methodical effort to manage or improve your credit score.
Also, frequently checking your score is mandatory to check your improvement or maintenance of your CIBIL score. We have covered most of the techniques to improve your credit scores and talked about some basic methods to maintain the same.
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