If your CIBIL score is shot from approximately 870+ to below 600, then this blog is definitely for you. Here we are going to discuss how can you increase your CIBIL Score and also we’ll understand CIBIL score work and its importance.
Understanding CIBIL Score.
- Your CIBIL score is updated on a monthly basis by your bank (every month end)
- Transaction of 2,00,000 to 5,00,000 every month in your savings account adds an extra 3 to 4 pts to your score.
- Getting a personal loan against gold or any property and repaying it on time every month improves your score by 6 pts. But a single cheque bounce will eat 15 pts, so be very careful.
- You’ll get a bonus of 3–4 pts for every cheque cleared successfully without bounce. It can be a cheque to pay your EMI or a cheque to your customer or partner or even to a family member.
- Your score will go down by 6 points every time you check it through a lender when applying for a credit card or loan. But when you take a paid membership through any credit score checking website then it won’t affect your score.
What If Your CIBIL Score Is Too Low?
But take my advice if you need a fast recovery and your credit score is too low:
List the daily maximum transactions (at least $25,000) between bank accounts. After two months of daily practice, your bank will make you a pre-approved loan offer in the third or fourth month. Absolutely flawless operation.
Use just 10% of your credit card limit each month. Preferred, pay your current obligations, such as credit card bills, four or five days ahead of schedule.
To raise your credit score, think about qualifying for a secured loan—a mortgage or gold—and making on-time payments. A few NBFCs might give you the loan even with a low CIBIL.
You must present your most recent three to six-month salary slip, your bank statement for the previous twelve months, and your most recent three years’ worth of IT returns in order to apply for a home loan. Any house loan must have these three conditions. Try seeking private finance if banks reject your application for a home loan; the interest rate would be around 2% higher yearly.
What Is A Good CIBIL Score?
Between 300 to 900 points is regarded as an excellent CIBIL score while some lenders could require a CIBIL score of 750 before they will approve your loan. Better credit scores mean you are credit-worthy and have a good track record of loan payback, so both a lower interest rate and a bigger loan amount will be available just for you.
Complete the form on CIBIL’s website to get a free copy of your credit report once a year. Giving yourself advance notice allows you to make any necessary repairs.
How To Check My CIBIL Score In RBI?
You can view your CIBIL score simply by visiting the CIBIL website as the Reserve Bank of India has mandated that the Indian credit bureau post each borrower’s credit history online. One free CIBIL score check is allowed by RBI regulations once a year.
- Visit and learn how to obtain your credit score for free by following the fundamental procedures.
- Click on the Get Your CIBIL Score tab under CIBIL Score | Credit Score | Credit Report | Loan Solutions.
- Users who have never used an account before must register with their name, email address, and mobile number. It lets you design your own username and password.
- Enter your personal information including your date of birth, address, PAN card, or Aadhaar card number after making your account.
Select Accept and Proceed. - Check your identity using an OTP sent to the email or mobile number you registered.
- Upon identity verification, you will need to confirm your enrollment.
- View your credit report on the dashboard.
