October 7, 2022 8:00 pm
cibil score

Do you want to discover if you can quickly boost your credit score? Credit score improvement might take many months and takes a lot of patience. There are no shortcuts to improving your credit score; instead, you must remain focused on doing the necessary measures. If you have a poor Credit Repair Australia score, you may have difficulty obtaining a new credit card or a loan. Before granting you credit, most banks and other financial organisations examine your credit score. A poor credit score reduces your creditworthiness and makes it more difficult to have your loan authorised. Your CIBIL score is influenced by a variety of factors, including current outstanding debt, repayment history, new credit applications, and so on. However, there are no time constraints when it comes to restoring your credit. Of course, the lower your score, the longer it will take. If your score is between 650 and 700, it will take between 4 and 12 months to reach 750. If your score is less than 650, it will take longer. However, there is no easy way to raise your CIBIL score. You must be patient, adjust your repayment habits, and be self-disciplined to see results. The effects of obtaining a good grade last a lifetime.

Best Ways to Improve Your CIBIL Score

Generally, there are numerous ways that you can use to increase your CIBIL score. Some of the ways are as follows:

Improve Your Payment History 

You may enhance your repayment history by making regular and timely credit card and loan EMI payments. Your credit score will improve as a consequence. If you fail to make a credit card or loan EMI payment on time, your credit score will suffer. As a result, if you want to improve your credit score, you should focus on improving your payment habits. 

Maintaining Old Accounts 

The vast majority of consumers feel that cancelling old accounts will help them improve their credit. This is a misconception, and it is recommended that previous accounts be preserved in order to increase one’s credit score. Older accounts are seen favourably by credit agencies since they demonstrate the borrower’s long-term relationship with the lender or bank.

Utilising Less Credit 

When banks evaluate your credit score, the credit usage ratio is an essential factor to examine. Maintaining a decent credit score requires a credit use rate of less than 30% of the available credit limit. 

Credit is Distributed Fairly 

Mixing secured and unsecured loans might result in a strong credit combination. Because secured loans are often long-term, they help to strengthen credit. Because of its long repayment period, a home loan demonstrates the borrower’s ability to make consistent payments over time.

Advantages If You Have a High CIBIL Score

A high CIBIL score offers several advantages. You are entitled to all of the benefits that come with a high CIBIL score. Some of the benefits of having a high CIBIL Score are as follows: 

Low Credit Card Fees and Interest Rates

If you have a high credit score, you will almost always be able to obtain the lowest interest rates and pay the least amount of financing costs on credit card balances and loans. If you pay less interest, you may be able to pay off your debt sooner.

Credit Card As Well As Loan Approval is Simple

Because of the simple and easy process your chances of getting approval on your credit applications enhance when you have a strong CIBIL score. You should not be afraid to apply for a loan or a credit card in general. If you have a strong CIBIL score, your loan or credit card application is more likely to be approved since banks consider you creditworthy for a loan.

Increases Your Negotiating Power 

Having a strong CIBIL score can give you numerous advantages. One of them being that you may be able to negotiate lower interest rates on credit cards and loans if you have a strong credit score. If you have a low CIBIL score, the bank will charge you a high interest rate on your loan application. If you have a poor CIBIL score, you will be unable to further negotiate the terms with the bank. 

In India, the credit score produced by CIBIL (Credit Information Bureau India Limited) is known as the CIBIL Score, and banks usually take your CIBIL score into account before accepting your loan application. If you are considering asking for a loan, you should first review your credit score. You will be aware of your score, and if it is poor, you may need to take steps on how to improve CIBIL score before applying for a loan. Moreover, having multiple loan rejections can further lower your credit score. Therefore, it is advisable to avoid applying for multiple loans at the same time. Moreover, it might take anywhere from 4 to 12 months to boost your CIBIL score, depending on your consistency in displaying favourable credit behaviour.