HOW TO CHECK AND INCREASE YOUR CIBIL SCORE?
Credit Information Bureau India Limited commonly known as CIBIL score which is used to apply to check CIBIL Transunion score. CIBIL Transunion score is important when you apply for a loan. Before processing the application, the bank will check your CIBIL Transunion score. The CIBIL score is between 300 to 900 to get 900 score is better when you apply a loan.
Understanding the scoring pattern
Understanding the scoring pattern or report the best thing you need to do. A database and tract record of all the credit cards or past loans along with the user name also with the repayment history for irregularity or regularity as the case is respectively known as an individual’s CIBIL report. This score helps to certify the financial behavior and financial discipline of an individual and helps the banks to decide the intent for repayment in future. This is based on the available date along with your current actions and estimate the current financial needs.
Clean the credit cards
Cleaning a credit card outstanding due has a great impact on CIBIL score. Leftover outstanding dues will affect the score of your CIBIL score. So, clearing all the outstanding dues help to increase in your CIBIL score. Therefore, it is better to use credit card for spending in such a manner that you definitely clear the credit card balances before the due date. This will help to get a positive reinforce in your CIBIL score which gives a good financial behavior and disciplines where the lenders seek in their clients.
In the CIBIL website ‘www.cibil.com, an individual must have to make sure on that any errors in your credit report are appealed by the individual there. Sometimes lenders could make typographical data entry errors and even a software’s are not immune from errors. Errors can happen in any way. It is required for the usurer or financial agency addressed to report the appeal within a time frame of a month if the appeal is rectified to error is pending. The individual’s credit rating score will automatically increase when the error is addressed and rectified. It is recommended to apply for a fresh credit only after the older loans or outstanding amounts are totally cleared. It is the best way to get loan easily when you start with a clean account.
Use the oldest Credit card
There is a rumor that the credit card account never deactivated when it is no more use. It is happened because most of the people doesn’t care about the crash that it has on an individual’s CIBIL report. It is genuinely said that it is a protection on a disguise which a quality credit card account over a long period of time that has been managed with a well time frame payments of outstanding. It is a greatest way to improve the CIBIL score. The most important point to issue is that to improve the credit worthiness which is a healthy repayment track record of your credit card which the bank issues must be continued and held on as long as possible. As long as you have a positive credit card and repayment history then as long as you have a high rated CIBIL score.
Equated of Monthly Installment Payments
When you decided to purchase big things like four wheeler or apartment or piece of residential land as an Individual. If you are prompting in repay of the EMIs on your credit card you will never be removed from consideration. So, paying an equal monthly installment of your past bigger loans in time will help you in improving your track record to pay bigger amounts. And this will also help to get higher rating in CIBIL score.
Information on the secured card
If a client has a bad CIBIL score then you should probably get a secured card against the fixed deposit from the apposite bank. Top banks like Axis Bank. SBI, ICICI Bank, Kotak Mahindra Bank and so many other banks provide a secured credit against a fixed deposit of nominal amount. And keep in mind when you repay your balance on time then the CIBIL score reaches high.
Improving the rating through Peer to Peer Platform
Using Peer to peer lending platform is one of the most brilliant way to improve the CIBIL score just like the Lendbox. But still it is very yet known way. There are a lot of benefits when you borrow from a peer to peer lending platform. As long as they have some valid reasons for their credit history. Lendbox helps people with poor CIBIL score to register on the platform apart from the bank. There are no charges on prepayment when you get a small short term loan from Lendbox which is said as to be really easy. When repay on time then it will improve your score on the rating of CIBIL system too.
It is better to keep high rate in CIBIL score so you will able to get loan and all easily from the bank. If you repay on time then you don’t need to be stressed out.