Improve your credit rating: Try these effective tips to boost CIBIL score

By Deepu Mohan | First Published Nov 12, 2024, 7:57 PM IST

A person with a credit score of at least 750 can easily get a loan from a bank. However, as the score decreases, the chances of getting such services from the bank diminish. Here are some tips to improve CIBIL score.

Credit scores have become widely understood, and their importance is well recognized. A strong CIBIL score plays a significant role when applying for loans from banks or financial institutions. Typically, individuals with a score of 750 or higher find it easier to secure loans and those with lower scores may face it much more difficult accessing such services. CIBIL stands for Credit Information Bureau (India) Limited, and improving your score can make a substantial difference in your financial options. Here are some simple ways to boost your credit score:

Timely payment of installments

One of the easiest ways to improve your CIBIL score is by ensuring timely payments of your monthly installments. Missed or delayed payments negatively impact your score, so it's essential to stay on top of your payment schedule.

Pay daily utility bills on time

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Regular bills like internet, gas, electricity, and other utilities should be paid promptly. Setting up reminders or automating payments can help you avoid late fees and contribute positively to your credit score.

Avoid reckless spending with credit cards

Banks assess your credit capability carefully, so it's important to manage your credit card usage wisely. Avoid using credit facilities for unnecessary purchases. Responsible credit usage is key to maintaining a healthy credit score.

Be cautious with multiple loans

Taking on several loans at once can strain your finances and lead to missed payments. It's advisable to pay off one loan before applying for another. Failing to keep up with multiple loan payments can result in a drop in your CIBIL score.

By following these simple steps, you can gradually improve your credit score and enhance your chances of securing financial services when needed.

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