6 Simple Ways to Boost Your Cibil Score

By implementing these 6 Simple Ways to Boost Your Cibil Score, you may observe a drastic improvement in your cibil score: Expert Tips from FinSecure Consultants.

1. Pay Debts on Time: Always pay your credit card bills and loan EMIs on time. Missing payments can lower your credit score and attract penalties. Set reminders or use automatic payments to ensure timely payments.
   

2. Avoid Multiple Loans: Don't take multiple loans simultaneously. Pay off your current loan before taking another. Multiple loans can signal financial strain to lenders, potentially lowering your credit score.
   

3. Maintain a Balanced Credit Mix: Have a mix of secured loans (like home and car loans) and unsecured loans (like credit card debt). A balanced credit mix positively impacts your credit score.
   

4. Use Less of Your Credit Limit: Limit your credit card spending to 30% of your credit limit. For example, if your limit is ₹200,000, keep your monthly spending under ₹60,000. High utilization can indicate impulsive spending, which may lower your score.
   

5. Increase Your Credit Limit: If offered a higher credit limit due to good repayment behavior, accept it. A higher limit with controlled spending improves your credit score by lowering your credit utilization ratio.
   

6. Check for Errors in Your Credit Report: Regularly review your credit report for errors. Mistakes, like an unpaid loan marked as unpaid, can harm your score. Correcting these errors before applying for a loan ensures your credit score is accurate.

By following these steps, you can effectively improve your credit score and increase your chances of loan approval.

By Mihir Desai,

Partner, FinSecure Consultants.