Lifestyle
Here are seven excellent techniques to improve your CIBIL score
Paying credit card payments, loan EMIs, and other expenses on time is the most crucial part of excellent credit. A single late payment might hurt your score.
Keep your credit card balances low and try to pay off existing debts. High outstanding debt can lower your credit score, so aim to maintain a credit utilization ratio below 30%.
Each time you apply for credit, a hard inquiry is recorded, which can slightly lower your score. Avoid applying for multiple loans or credit cards in a short period.
Having a good mix of secured (e.g., home loan, car loan) and unsecured credit (e.g., credit cards, personal loans) shows that you can manage different types of credit responsibly.
Review your credit report for errors or discrepancies. If you find any inaccuracies, report them to CIBIL to have them corrected, as they could be affecting your score.
The length of your credit history contributes to your score. Keep older accounts open and active, as they show a longer credit history, which is beneficial.
Avoid maxing out your credit cards. Try to spend only what you can pay off in full each month. Keeping your credit utilization low helps in improving your score.