Your CIBIL score is a key factor for loans, credit cards, and financial credibility. A low score can limit your access to credit or increase interest rates. Here’s how to boost your score effectively.
1️⃣ Pay Bills and EMIs on Time
· Timely payments of credit card bills, EMIs, and loans are crucial.
· Late payments directly lower your credit score.
2️⃣ Maintain Low Credit Utilization
· Keep credit usage below 30–40% of your total limit.
· High credit utilization signals financial stress to lenders.
3️⃣ Check Your Credit Report Regularly
· Get a free annual credit report from CIBIL.
· Correct errors or discrepancies immediately to avoid score dips.
4️⃣ Avoid Multiple Loan or Credit Applications
· Frequent applications generate hard inquiries, which lower your score.
· Apply only for essential loans or credit cards.
5️⃣ Keep Old Credit Accounts Active
· Longer credit history improves score.
· Avoid closing old credit cards or loan accounts unless necessary.
6️⃣ Diversify Your Credit Mix
· Having a mix of credit cards, personal loans, and home loans shows responsible credit behavior.
· Avoid overloading on a single type of credit.
7️⃣ Settle Dues Instead of Defaulting
· Clear pending loan balances or overdue bills.
· Settled accounts improve your financial credibility.
8️⃣ Use Credit Responsibly
· Borrow only what you can repay.
· Avoid relying on multiple short-term loans to cover expenses.
✅ Takeaway
Improving your CIBIL score takes discipline and patience. By following these strategies, you can boost your score, improve loan eligibility, and enjoy better financial freedom.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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