How to increase CIBIL Score fast ???

increase CIBIL score

by GOBINDA SAHA
October 15, 2022, 2:13 pm
in Finance

15.k views

How to increase CIBIL Score Fast?

A CIBIL score also known as Credit Score, is a 3-digit number that represents how you can manage your Credit that you have borrowed from any Credit lending institutes like Bank, NBFC etc. CIBIL Score plays a very crucial role in the loan approval process. Higher the score higher are your chances of loan approval.

Having a goood CIBIL Score is all about maintaining a good financial Habit.

Few important tips that will help you to increase your CIBIL Score:

1) On time payments:
Ensure you make all payments before the due date to improve your score. To help you with this, set reminders or use apps that send you reminders and help you to manage multiple Credit Cards very efficiently.

2) Understand the concept of Credit utilization!
It is a measurement of how much of your available limit you are utilizing. It is recommended not to exceed 30% of your Credit limit. Your Credit utilization has an impact on your Credit score. Increase your limit if you have high Credit utilization rate, so that it falls within 30% of your Credit limit.

3) Age of Credit history:
Age of Credit history is the number of yours that have passed since you opened your first Credit account. Having a decent Credit age is better for your Credit score. It is measured by calculating the average age of all your Credit accounts. Your Credit history length has a medium effect on your Credit score.

4) New Credit account:
Credit accounts that you have opened recently are called as new Credit accounts. Your Credit score can be impacted temporarily if you make too many accounts or requests in a short amount of time. This has a low impact on your Credit score.

5) Maintaining a good Credit mix!
This measures how well you can manage different Credit products. It accounts for various uses by considering if you have a personal loan, Credit cards, mortgage or other Credit products. Credit mix has a low impact on your Credit score.

6) Keep old cards active!
Total age of your credit activity boosts your Credit score.

7) Be vigilant!
Check credit report regularly and report inaccuracies to the bureaus.

Thus maintaining on time payments and keeping Credit utilization rate below 30% has a high impact on your Credit score. Your Credit age gives a medium impact on your Credit score. Opening too many new accounts within shorter span of time is not healthy though it has a low impact on your Credit score. Maintaining good Credit mix is healthy but it also has a low impact on your Credit score. Thus on time payments and low Credit utilization score are the two most crucial things to maintain for a good CIBIL Score.