How to Increase Cibil Score: The Cibil Score is prepared based on the repayment history of all your previous loans. It is like a kind of report card. Based on this, banks decide whether they should give you a loan or not, and if they should, then at what interest rate. Cibil score is also called a credit score. The better the credit score, the more easily you will get a loan with better rates. But if your Cibil score gets bad, then how can it be improved again and how much time will it take to fix it? Know about this-
What is the parameter of the Cibil score
If a customer's Cibil score is between 300 to 550, then it is considered bad. If it is between 550 to 650, it is considered average. If it is between 650 to 750, then it is considered good and if it is between 750 to 900, then it is considered very good.
What mistakes worsen the score
There can be many reasons for the worsening of CIBIL score like not paying EMI on time after taking a loan, loan settlement, loan default, 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 a loan guarantor for someone and in such a case your joint account holder or the borrower for whose loan you are the guarantor makes a mistake, then it also has a bad effect on your CIBIL.
How will the CIBIL score improve?
Do not take more and bigger loans than required. If you have taken a loan, then pay its EMI on time. If you are a credit card user, then do not spend more than 30 percent of your maximum limit and pay the credit card bill on time. Do not take unsecured loans repeatedly and frequently. Repay old loans. If you have settled the loan, get it closed as soon as possible. Apart from this, become someone's loan guarantor very carefully. Decide to take a joint loan carefully. Check your credit report from time to time. If there is any mistake, get it corrected immediately.
How long will it take to improve a bad credit score
If your credit score has deteriorated, then improving it is not a one-day job. For this, you have to be a little patient because it improves gradually. It can take at least 6 months to 1 year to improve your bad CIBIL score. If the score is very low, then it can take even more time to improve it. So do not keep any misunderstanding in your mind.
Bring the minus CIBIL score to the green mark like this.
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, banks are unable to understand whether to consider the customer trustworthy or not. In such a situation, you have two options to increase your CIBIL score. First, take a credit card from the bank 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 to open two small FDs of Rs 10,000 each in the bank. After opening the FD, take a loan against it under the overdraft facility. As soon as you withdraw money on your FD under overdraft, your loan will start and soon your credit score will increase.
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