Improve your Civil Score with these few tips

A CIBIL score is the rating indicating your financial creditworthiness whenever you apply for a loan or a credit card. These ratings are based on algorithms that analyses and tracks your credit history of loans, repayment pattern, defaults in repayment (if any), etc.

Your repayment habits of outstanding debt can have a significant impact on your credit score.  A poor rating can give you nightmares if you need to borrow money from the market lenders for reasons like medical emergencies, debt repayment, etc. Ideally, anything under 700 is a danger mark implying a history of late or irregular payments against loans, credit cards, etc.

Under these circumstances, it could be a daunting task to come back to the track and improve your civil scores. A low CIBIL score can be terrifying for those individuals who have an urgent need for money, but coming back to better scores is easier said than done. It could take a few years of dedicated efforts and immense patience.

Whatever may be the case, build up your scores by adopting some of our smart moves.

1. Handle loan rejections with care: While your civil report only maintains credit information, lenders, financial firms and banks concentrate on how many time your report was accessed by other loan providers. Multiple applications in a short time quote you as ‘desperate for loan’ and affect your credit good-will. Be patient and avoid this.
2. Check credit reports regularly: This is critical as it tells you about delayed payments, dipping scores, misinformation with regards to your details or identity theft. Carefully going through the reports and detecting these flaws will help you dispute inaccuracies. Once the error is resolved, it will show improvement in your civil score.
3. Clear credit dues: Plan and monitor your spending habits. It is vital to clear credit balances before the due date and the billing cycle. The unpaid outstanding amount each month reduces the score immensely. Consolidating multiple credit card balances with the personal loan boosts credit score. Also, possessing just a couple of credit cards is a good idea.
4. No credit history: If you don’t have a single loan account, it could affect your loan applications negatively. If you have not taken a loan in the past, it makes it a little difficult for the lender to decide whether you are a high risk or low risk category person. Lenders then are left with no choice other than to consider your income and employment to ensure your repayment capacity. You are, thus, categorised as a new credit person and no score is generated.
5. Maintain credit mix: Find out more about secured and unsecured loans. Your credit should be a mix of home/ auto loan and personal/ credit cards for a period of long and short tenure helps build up the positive civil score. Opting for too many unsecured loans leads banks to make a negative marking for you.

Join us for more on tips to improve your score at https://civilscores.com/.