How to Improve CIBIL Score Smartly – Loans

The Credit Information Bureau India Limited generates reports based on your credit performance by taking into account various factors like credit history, the amount owed, new loans, and other factors.

CIBIL score varies between 300 to 900. A credit score less than 750 is considered good, satisfactory, and bad. You need to maximize your CIBIL score to excellent remarks.

IDEAS FOR CIBIL IMPROVEMENT

· Self-discipline- Other factors do not reduce credit scores like outstanding payments or debts. You have to be disciplined enough to repay your loans and credit card bills on time. You should have to pay penalties for late payments. Set reminders always to avoid confusion.

· File disputes for unreliability- You need to file disputes on CIBIL’s official websites for mistakes you find during the review of credit reports. Once the error in your report will resolve, your CIBIL report improve automatically. Don’t apply for a new loan without sorting out old issues.

· Handle application rejections carefully- Don’t show your credit-hungry behaviour by applying to many institutions in a short time it affects your credibility. Always check the first eligibility requirement before applying. And handle everything with patience in rejection time.

· Shows good debt to lenders- Don’t close your old accounts. It would be always helpful in showing good debt in history to the lenders, whenever required you can show it as proof. It is good for cibil improvement.

· Stop doing too many credit queries- So many cibil inquiries make your score lower. Do not check the score so frequently, especially during your application rejection times.

· Increase in credit limit- Ask your institutions or Bank to increase your credit limit. It does not mean you’re going to spend beyond the limit. If you’re able to use credit wisely it would be helpful in increasing your score because you can minimize your credit utilization ratio. The only use of 35% or less of full credit-taking capacity, will maintain a positive impact.

· Borrow as per your ability- It is one of the best ways to improve the CIBIL report is to borrow only what you are able to repay. When the loan amount is higher, EMIs are also high. Nowadays taking a loan is a very easy requirement.

CIBIL SCORE IMPROVEMENT AGENCY AND IMPROVEMENT IN CIBIL REPORT

If you want to rectify your cibil score you can also take a help of a cibil score improvement agency.

Agency will help to file a dispute (provide necessary documents & evidence to the agency) by charging some amount on behalf of you with the credit agency. The credit bureau will send the credit reports to you privately via courier.

You can take action as per the report and negotiate with the lenders accordingly.

· The process is a little bit time-consuming.

· You can contact agencies online or offline.

· Bank approval is required to send it to the bureau.

Conclusion- CIBIL improvement is not a big deal. You can also try to improve cibil score through your own efforts or you can also take the help of agencies. Both are reliable. You can go for any options as per your convenience and requirement as per problems.