CIBIL Score affecting factors and How to Improve CIBIL Score immediately

Know These 6 Factors To Improve Your CIBIL Score Very Fast

 The maximum CIBIL score a person can have is 900. The lowest score is 300 but there is another range called, ‘not available.’ It is very easy for a person with a higher CIBIL score to avail a loan from a bank or another financial institution.

An Unknown Use of CIBIL

Did you know that certain nations look at your CIBIL score while considering your visa applications?

It is a very good idea to meet a reputed financial products expert to learn about CIBIL before applying for a loan.

What Does CIBIL Look At To Create Your Score

i. Tenure and credit mix.

ii. Exposure to loans.

iii. Credit history.

iv. Other factors.

Loans That Does Not Require CIBIL

RBI has made it compulsory for all banks and other lending agencies to sanction loans based on credit reports. It simply means that you need to have a credible CIBIL score to get a loan sanctioned.

What Is A Good CIBIL Score?

Banks should not hesitate to give you a loan after verifying your score. A reasonable and acceptable CIBIL score is in the range of 600 to 749. However, it may not guarantee a loan.

A score between 300 and 599 immediately renders you disqualified to take a loan. At the same time, a score of 300 is the lowest. 

If the score is above 750, you will naturally enter the preferred customers list.

Can I Improve My Bad CIBIL Score

There are a number of reasons why you have a low score.

i. Never took a loan.

ii. Bad repayment history.

iii. Your bank failed to update on your repayments.

Whatever is the case, below are 6 sure shot methods to improve your CIBIL score drastically. 

1. Maintain The 30% Credit Utilisation Thumb Rule 

Use only 30% of your credit limit on credit cards. Your credit card statement has a direct impact on your CIBIL score. It is a telltale record of your below attributes:

i. Ability to manage personal finances.

ii. Strength of financial discipline.

2. Give Attention To Credit History

The CIBIL scoring system looks at your repayment history towards 30% of the score. So it is very important to repay all EMIs within time limits.

3. Possessing A Secured Card

Even if you have a bad credit, many banks will give a credit card against the deposits in the accounts you have with them. You can make use of this card to repay in time and thus improve credit ratings.

4. Appealing On The CIBIL Website

CIBIL has system which allows you to appeal on their website against the institution that gave you the loan. If it is a just appeal, your score will be rectified within a month. If you take the assistance of a proven loan assisting company, the error will be rectified resulting in a good credit score.

5. You Can Create Your Own Credit History

Not having a borrowing history can result in a low CIBIL score. This can be taken credit of by availing loans from a credible lender and making all repayments in time.

6. Analysing Your CIBIL Score

CIBIL calculator is a tool that is used to analyse your score. It can bring to your notice certain errors from the lending agency that might have adversely affected your score.

If you take the services of a proven financial service professional, they will immediately discover the issues and take steps to rectify them. 

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

CIBIL Score affecting factors and How to Improve CIBIL Score immediately
Maniraj Anantham 1 March, 2024
Share this post
Sign in to leave a comment