Do you want to know if you can improve your credit score quickly? A credit score can take several months to improve and requires a lot of patience. There are no shortcuts to raising your CIBIL Score; instead, you must stay focused on doing the essential steps to improve your credit score. If you have a low credit score, you may have trouble getting a new credit card or getting a loan. Most banks and other financial institutions check your credit score before offering you credit. A low credit score lowers your creditworthiness and makes it more difficult for your loan application to get approved. A multitude of factors impact your online CIBIL score, including existing outstanding debt, repayment history, new credit applications, and so on.
Different Ways to Improve Your CIBIL Score
There are no time limits for rebuilding your credit. The lower your score, of course, the longer it will take. If your score is between 650 and 700, it will typically take 4 to 12 months to reach 750. It will take longer if your score is less than 650. There is no easy way to raise your score. To see benefits, you must be patient, change your repayment habits, and be self-disciplined. The consequences of receiving a good grade endure a lifetime. Some of the ways that can help you in increasing your CIBIL score are as follows:
1. Enhance Your Repayment History
By making regular and timely credit card and loan EMI payments, you may improve your repayment history. As a result, your credit score will rise. Your credit score will suffer if you fail to make a credit card or loan EMI payment on time. As a consequence, if you want to raise your credit score, you should concentrate on improving your payment habits.
2. Keep Old Accounts
Most people believe that closing old accounts would help them improve their credit. This, however, is a myth, and it is advised that old accounts be kept in order to improve credit score. Credit agencies view older accounts favourably since they indicate the borrower’s long-term relationship with the lender or bank.
3. Use Less Credit
The credit utilisation ratio is an important component to consider when banks analyse your credit score. A credit utilisation rate of less than 30% of the available credit limit is highly recommended for maintaining a good credit score.
4. A Balanced Credit Mix
A balanced credit mix may be achieved by mixing secured and unsecured loans. Because secured loans are usually long-term, they aid in credit rating improvement. A house loan, due to its extended repayment duration, displays the borrower’s capacity to make regular payments over time.The credit score provided by CIBIL (Credit Information Bureau India Limited) is known as the CIBIL Score in India, and banks normally consider your CIBIL score before approving your loan application. If you’re thinking about applying for a loan, you should first check your credit score. You’ll know if it’s low, and then you may follow the measures on how to improve your CIBIL score and apply for a loan. Depending on your consistency in demonstrating favourable credit behaviour, it might take anywhere from 4 to 12 months to raise your CIBIL score.