How to improve Cibil Score?
All most all of us wish to have a healthy Cibil score. Unfortunately, most of us don’t have a good Cibil Score. Well, I as an expert in risk management wish to inform you that there are no scientific formulae to improve the health of Credit status. The only Brahamastra to boost Cibil score is to follow the entire financial discipline and maintain a healthy Credit Portfolio. Also, right advice and expert guidance can help you to improve your score.
Below, there are five important tips that can help you to improve your Cibil Score.
1. Make all payments on time. It is the most important fact that you need to keep in mind. Whether it is your credit card bills, home loans EMI’s or something else, you need to pay on time. Even, it is better if you make payment before due days. Some of you prefer cheque to make payments. Then in such condition it is extremely necessary to make payment before due dates as time is required for cheque clearance.
2. Don’t show credit hungry behavior. It is good not to apply for too many credit cards. Too many credit cards show the credit hungriness. So, it is advisable to keep maximum 2-3 cards. And, if you are habitual to change the credit card then it is good to change your habit. You might be surprised that old cards with regular payment help you to enhance your Cibil Score.
Also, you need to avoid borrowing 3-4 loans at the same time. It will be good if you complete one loan and then apply for next loan. Borrowing many loans also show the hungry credit behavior.
3. Use Credit Cards Responsibly. You need to use your cards smartly. One fact you need to know that if you use your credit card irresponsibly then the card is the biggest curse. You need to avoid touching credit card limit every month. If you find yourself that your need is increased. Then you can ask the bank if they can increase your credit limit. If your credit performance is good, then bank will happily increase your card limit.
4. Credit Worthiness. Consistency efficiently builds credibility and credibility have the potential to improve Cibil Score. Do you know that good history of timely payments & responsible credit behavior is the master key to credit worthiness? A score above the 650 shows the creditworthiness. And if you have a score around 800 means you are in the elite club.
5. Secured and Un-Secured Loans.Some of you might be amazed at this term secured and unsecured loans. Also, they think that how the secured, unsecured loans and Cibil Score have connected. Well, first of all, you need to know that the loan in which you use collateral comes in secured loans. For an example, the home loan comes in the secured loan while car loan personal loan comes in the unsecured loan. Now, you need to make a perfect balance between secured and unsecured loans. Secured loans are good for improving Cibil Score. A credit portfolio should be 20% unsecured and 80% secured.