Ways To Increase Your CIBIL Score

By | May 28, 2021

CIBIL score is one of the most important things to get approved for any loans or credit facilities. Whether it can be a car loan, home loan, education loan, or you want to apply for a credit card as well.

CIBIL score comprises an essential part of one’s financial life; that’s why it is said to maintain a good credit score to get approved for any credit without any issue.

CIBIL score

A healthy CIBIL score is above 750 points; having a CIBIL score more than this makes you eligible for a loan very easily.

If anyone has scored low than 700, then it might get difficult for them to get approved for a loan. That does not mean people won’t get a loan, but the process of approval becomes so lengthy for such people.

Here we will share our experience of attaining 800 and above score.

Ways To Improve CIBIL Score

Get Secured Credit Cards

Secured credit cards are issued against FD and are one of the best ways to increase your CIBIL score. Getting such cards is not difficult, and they do not put a hard inquiry on CIBIL for these cards.

If you use these cards properly for nearly a year it will help you a lot to improve your credit score.

You can go for an ICICI platinum credit card or Axis Bank insta easy credit card issued against FD. There are few more cards, but these are the most trending of all.

Take House Loan

Housing loans are considered as good credit and if you have any house loan in your name. It will help you build your CIBIL score gradually.

Successfully paying the house loan installment for one year without any default will increase your score.

Education Loan Can Help Too

Education loan is also considered as a good way to increase the score. Any loan like a car/bike loan is also considered the best way to improve the score.

Repayment of any loan in a subtle manner is one of the best ways to improve the score. Hence you can go for any loan to improve your score.

My Experience: I had an educational loan that was active 3 years back. As I was re-paying my loan installments, I come to know that my CIBIL score is moving up constantly.

Before my education loan, I had no other loan, and I do not know what a credit score is. But as I cleared my loan on time, till that time, my credit score has crossed 750points.

But if sometimes you cannot pay an installment on time, it won’t affect your score. Considering the period of non-payment might not be too long.

Credit Card Loans

If you have a credit card, then you can also opt for the credit card offered to you by the bank. However, this offer is also made on your credit score if you have good repayment history. It will work for you.

Many banks bring jumbo loan offer from time to time for its regular customer. The loan amount depends on the credit history of the customer.

Do Not Exaggerate Credit Limit

You have to make payments through credit cards in a strategic way. This means you should try to keep your expenses within 30-35% of the credit limit.

Exaggerating the limit will make a bad impression on you in the bank. But if you spend more using a credit card, try to keep the advance balance in credit a/c for safety.

However, you can touch the limit once or twice a time so that bank can understand your need to increase your credit limit.

The Verdict

The credit score is made out of your capability to payback credit you owe.

Suppose you want to keep your CIBIL score updated every time. Just try to make nominal payments using your card so that banks or credit institutions can track your payment-repayment cycle.

Memorize one thing making repayments on time is the biggest thing that will improve your score and make your profile better.

Also, increasing and improving the CIBIL score is not a matter of a day. It will take roughly 4-5 years of consistent financial planning to attain the threshold.

Do you know any other way to improve credit score? Feel free to share in comments

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