How to Improve Your Cibil Score Hassle Free?

Although there are multiple factors based on which CIBIL Score calculation is done for the issuance of credit cards or a favorable loan process. But a credit score is one of the most crucial factors that determine how to improve the CIBIL Score immediately. A CIBIL Score or a credit score is derived from credit history.

A score of 740 is required to get through an easy loan process. Many organizations help us how to check the CIBIL Score for free, the top four are CIBIL, Equifax, Experian, and CRIF. It has always been evident that applicants with high CIBIL Scores are given more preference when the loan applications get scanned.

What Is A Good Credit Score Considered?

CIBIL Score varies anywhere between 300 to 900. The higher the CIBIL Score, the better your chances for approved loan requests. A good CIBIL Score is considered to be 750 and higher to get through an easy loan sanction process. There are chances of your application being rejected if your credit score is below 750 or you might be perceived to have a higher interest rate while approving your loan application. Therefore, it is advisable to maintain your CIBIL Score as healthy as possible to avoid any hunches in the future.

Credit Score Range

The range of CIBIL Score can be anything between 300 and 900. A good CIBIL Score exhibits good financial well-being and habits. This improves getting quick approval on loan applications with affordable ROIs and flexible tenures. However, maintaining a good CIBIL Score is not a one-time process but a progressive task. It is equally important to know how to check the CIBIL Score and manage the score well and correct errors if any on time.

CIBIL Score Range	Inference
300-599	Extremely Poor
600-649	Poor
650-699	Average
700-749	Good
750-900	Strong

Extremely Poor: High chances of application rejection
Poor: Reflects regular defaults. Minor chance of approval
Average: Requires guarantees for loan approval, high ROI.
Good: High chances of approval with higher ROIs.
Strong: Excellent chances of loan approval with minimum ROIs

Know Simple Tips to Improve Your CIBIL Score

While the CIBIL Score is an important aspect, it is equally vital to maintain it. Sometimes, due to a lack of knowledge or attention, we lose track of our CIBIL Score. Below mentioned are a few tips on how to improve CIBIL Score immediately:

Pay Your Bills Punctually: It is predominantly important to always pay your bills on time. Payment of bills includes on-time payments of credit card bills, EMI payments, etc. It is always a recommended practice to set up a payment reminder for these payments to avoid making delays by a day. Any delay in these payments incurs penalty charges which bring down your credit score.
Stay Attuned to Credit Report Discrepancies: It might happen that you have paid your bills on time but your lender delays reporting your timely payments to CIBIL, which can also bring down your credit score. Therefore, it is advisable to report any discrepancies to the CIBIL if noticed immediately.
No Credit History = Low CIBIL: Individuals who have not borrowed money in the past might reflect no credit history. No credit history represents a low credit score or low CIBIL.
Limit Your Credit Utilization: You should avoid spending more than 30% of your approved credit limit. Overusing your credit limit or using your credit limit beyond 30% is definitely to bring down your credit score.
Maintain a Healthy Repayment History: A healthy repayment history refers to paying all your bills, and EMIs as per the agreed terms. This is one of the easiest ways to maintain your credit score. A good repayment history reflects a healthy debt which makes you a preferred candidate for future loan requests.
Increase Your Credit Limit: It is always better to approach your bank seeking an increase in your credit limit if you often end up using a majority of your present limit. This portrays a healthy image of the borrower who knows the ways to control the credit limit efficiently.

Read Here More: What Actions Should Be Performed To Raise Your CIBIL score?

Maintain Older Credit Cards: Usually, people deactivate old credit cards which they no longer use. This harms the credit score by bringing it down, instead, we should try and maintain our old credit cards as long as possible. This not only levies or represents a healthy and solid credit history but helps significantly in improving the credit score.
Choose a Longer Loan Tenure: Holding on to big EMIs sometimes holds a lot on the pocket. Hence, try and choose a longer loan tenure to pay it efficiently and maintain your credit score. This habit is definitely to keep a check on your expenses and encourage on-time payments.

Conclusion

It is a consistent effort that takes a lot of patience if we answer your question regarding how to improve your CIBIL Score immediately. A good score or a high score improves your chances of a quick loan and will lower rates of interest. Wherein, a low CIBIL Score can be terrifying for individuals who have an immediate need for money.