Some banks like the Reserve Bank of India have made it mandatory to check the CIBIL report of every loan applicant before approving it. The higher the CIBIL score, higher are the chances of you getting good loan opportunities and deals. Therefore, increasing your CIBIL score is a must if you are seeking a loan immediately. Here are a few tips that show you how CIBIL score increases.
- Repay All Debts
Outstanding debts play a big role in lowering CIBIL because they indicate a lack of reliability and discipline. This is why it is suggested to be very sincere in paying your EMIs. It has the double benefit of saving your penalties and also providing a higher CIBIL score. If your credit history is good, your score is more likely to increase, which will ultimately make it easier for you to apply for loans.
2. Work On Your Credit Limit
This implies that your management of credit limit can impact your CIBIL score. Make sure you limit is high and make sure you maintain it. This is because it will indicate a more planned and wise use of money. The credit limit can be customized by contacting the bank and settling on a particular level based on expenses.
3. Don’t Stack Up Debts
This is self-explanatory. Make sure you repay existing debts before taking new loans. This reflects trust and makes you deserving of future loans. This will prevent your CIBIL score from dropping. Taking multiple loans together indicates a lack of discipline and insufficient funds. A poor credit card limit associated with high card use is a clear indication that you need to manage your funds with more care.
Besides the above-mentioned suggestions, you should also never close an old, existing credit account because that adds to the desired longevity in your CIBIL score and it is what lenders focus on while going through your application.