Conducting a CIBIL score check is easier today as borrowers can complete the process online. This benefit makes it convenient as you can know your score minutes before you apply, and perform routine checks often.
Cibil score
December 09: Conducting a CIBIL score check is easier today as borrowers can complete the process online. This benefit makes it convenient as you can know your score minutes before you apply, and perform routine checks often. Lenders like Bajaj Finserv are even offering customers a chance to check their score for free on their website, without it impacting your score.
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Moreover, with easy access to this information, learning how to improve CIBIL score becomes simple too. This is because you get access to your report as well, and it contains a lot of vital financial information.
To know how to improve your credit score efficiently, try the following tips.
Make timely repayments
Your repayment track record carries a lot of weightage into the calculation of your credit score. As a result, it becomes crucial for you to make all your payments on time. Any delay in full or partial payments can display irresponsible behaviour and cause your score to dip. To keep yourself on track, you can try setting up reminders or alerts from the financial institutions that will notify you of upcoming payments. This way you can ensure that you have enough funds to make the full payment. To know the impact of your payments, do a CIBIL score check often and note the changes.
Be watchful of your credit utilisation
The amount of credit you utilise from your total credit limit is an indicator of how you handle your finances. A high ratio means that you have a poor handle over your finances. Generally, it is recommended to use up to 30% of your total credit limit. To keep yourself in check, you should make a habit to do a CIBIL score check prior to availing a new credit. This way you can access the report and know your current utilisation ratio.
Monitor your joint accounts
A joint account means that you share the responsibilities and liabilities associated with it. This makes it vital that you only sign on for a joint account with someone who has a good handle over their finances and can handle credit responsibly. If the other party begins to miss payments, you will notice your credit score start to dip. This is when you may need to step in and make payments to keep your score healthy.
Avoid settlement of your credit
Settlements mean that instead of paying the full outstanding amount, you only make a partial payment to close the account. This option is generally offered by the institutions after you have not made payment for a long time and can’t make the full payment due to certain circumstances. When you settle your account, it negatively affects your creditworthiness and your credit score takes a hit.
Have a healthy credit mix
Credit mix refers to a balance between secured and unsecured debt. Because unsecured debt is collateral free, having too much of it can be detrimental for your credit score. Too much unsecured credit implies that you may be in constant need of credit and do not have a good handle over your finances. You can know your total of secured and unsecured debt whenever you do a CIBIL score check. If you find too much unsecured credit, try closing one account to restore balance.
Conduct a regular CIBIL score check
Doing a regular CIBIL score check is the first tip to learning how to improve CIBIL score. This is because with regular monitoring, you are more aware about your credit health and the impact your credit decisions have on your credit score. Regular checks can also provide you with valuable insights. For instance, if you notice an unrecognisable account in your report, it may be a sign of fraud. Catching such issues early minimises damages as you can get it rectified immediately.
Simply knowing how to improve CIBIL score is of no use if you don’t put it into practice. So be sure to follow the above tips and boost your credit score efficiently. You can do a CIBIL score check through a lender website and see your credit score in just a few minutes. Bajaj Finserv is a leading NBFC that offers you a stress-free and simple solution to staying on top of your credit health.
You can do a CIBIL score check on the Bajaj Finserv portal and know your score in minutes. All you have to do is provide your basic information and verify your identity through an OTP. This way, you can do a CIBIL score check and know how to improve CIBIL score with insights from the customised Credit Health Report. So, check CIBIL score information today and take charge of your credit health.
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