How to Increase Cibil Score: Cibil score matters a lot in the case of loans. Cibil score is like your report card which is prepared based on the repayment history of all your previous loans. It is determined between 300 to 900. If your score is in the red mark i.e. very low, then it can be very difficult for you to get a loan and even if you get it, you may have to pay a lot of interest. Therefore, to get a loan with better interest rates, you will have to keep your Cibil score good. Bad Cibil score can be corrected, but it is not a matter of one or two days. Know how much time it takes to improve a bad Cibil score and how it improves.
There can be many reasons for a deteriorating CIBIL score such as not paying EMI on time after taking a loan, loan settlement, not paying credit card on time, not maintaining credit utilization ratio, etc. Apart from this, if you have taken a joint loan or you are someone's loan guarantor and in such a situation your joint account holder or the borrower for whose loan you have become a guarantor makes a mistake, then your CIBIL is also adversely affected.
If your credit score has deteriorated and you want to improve it, then first of all understand that improving the credit score is not a one-day job. For this, you have to be a little patient because it improves gradually. It can take at least six months to 1 year to improve your bad CIBIL score. If the score is very low then it may take even more time to improve it. So do not keep any misunderstanding in your mind.
If you have taken a loan, then pay its EMI on time. If you are a credit card user, do not spend more than 30% of the maximum limit and pay the credit card bill on time. Do not take unsecured loans frequently and frequently. If you have settled the loan, get it closed as soon as possible. Apart from this, become someone's loan guarantor very thoughtfully. Decide taking a joint loan carefully.
If your CIBIL score is minus, then also the banks hesitate to give a loan. A minus CIBIL score occurs when you have never taken a loan and you do not have a CIBIL history. In such a situation, the banks are unable to understand whether to consider the customer trustworthy or not. In such a situation, you have two options to increase the CIBIL score. First - take a credit card from the bank and start using it and make the payment on time. This will start your loan in the banking system and your CIBIL score will be updated in two or three weeks. The second way is that you open two small FDs of Rs. 10,000 each in the bank. After the FD is opened, take a loan against it under the overdraft facility. As soon as you withdraw money under overdraft on your FD, your loan will start and your credit score will increase soon.
