How to Improve credit score 2020 in india

      Credit score is the summary of your credit(Loan) history like taking a personal loan, home loan, etc. This derived from your past credits taken and payments pattern a high score represents strong creditworthiness i.e banks and NBFC's will offer a higher loan amount if your Credit is more i.e 650. If your Credit score is less than 550 then it is considered as bad and most of the banks won't provide you with a loan or they might charge more interest rate on the amount you take. how to improve credit score. How to improve credit score in India.

     In India, CIBIL is the leading credit agencies, to determine your creditworthiness. A CIBIL  score varies from 300 to 900, 900 being the highest and 300 being the lowest. The closer your score to 900 the creditworthy you are and the better deals on the interest you will get. Generally, a score above 750 is considered ideal by many major banks and NBFC's.

     Steps to improve your credit score easily

1. Maintain a well-organized credit mix.
2. Timely payment of your due's.
3. Pay due's on-time and full.
4. Pay off your card due's on time. 
5. Don't withdraw cash from the ATM.
6. Don't make credit enquires often.
7. Check your credit score thoroughly and rectify the mistakes.

1. Maintain a well-organized credit mix

      It is recommended to maintain a mix of both secured loans(Auto Loan, Home loans, etc) and unsecured loans ( Personal loans, Credit cards, etc) of short and long term to build a good credit score. Recheck all your loans and make sure you have a less unsecured loan and your paying those dues on time. Having more unsecured loans will negatively impact your Cibil score. Debt is often essential but taking the right amount of debt and paying it on time for a long duration is very important, this would leave a positive impact on your credit score.how to improve credit score in Cibil

2. Timely payment of your due's.

     The more you are able to restrict yourself from credit usage the better your credit score will be. Particularly with a credit card most of the people fall for a trap of reckless buying, the bills pile up beyond your ability to pay on time. It isn't recommended to delay your payments if overspending is what you're doing, then you should definitely avoid it. This will not only lower your credit score below 550  in 30 days but the late payment charges and taxes paid will burden you. So paying bills late will further increase your chances of decreasing your Cibl score.
   
      To increase your credit score quickly then you should stop spending excess with your credit card for 3 to 4 months to stem the rise in bills.how to increase credit score quickly. how to improve credit score Cibil

3. Pay due's on-time and full.

    Pay your credit card dues on time and in full complete paments, most of the people fall prey for by paying the minimum due that is offered by the credit card companies but actually, the minimum amount is calculated at 5% of the billing amount in the next cycle, you might escape from the late payment charges by paying minimum due amount but taxes and interest rates will be adding to your next billing amount this will negatively impact your credit score. by stopping this your credit score will improve quickly and immediately.

4. Pay off your card due's on-time using a personal loan.

     Not paying credit card dues on time might be the main reason that your credit score is getting lower, to avoid this. you can use this tip of paying your credit card bill on time by taking a personal loan which usually has a lower interest rate than the credit card. This tip to increase your credit card will improve your credit score quickly. You can pay your personal loan in easy EMI's this will gradually increase your credit score.

5. Don't withdraw cash from the ATM.

     If are withdrawing cash advances from your credit card through ATM, Then you should pay off your bills ASAP. It doesn't matter if you are using your savings or Recurring deposits or any other financial instruments. The main problem with withdrawing cash from your credit card is the interest rate starts to accumulate from the point of instance unlike in other purchases where you will be given a few days to pay without interest. The bills will raise much higher for the cash advances this will make your credit score go down. tips on how to improve credit score.

6. Don't make credit enquires often.

     Make sure you don't apply for credit or loan's too often, every time you apply for credit or loan banks will ask for a credit report to CIBIL and this will be recorded in the report, If you inquiry many times will cause your credit score to decrease. And avoid checking your credit score too often this will also lower's your credit score. If you enquire more than three times in a month will negatively impact your Cibil score. Because of this, you will be suffering two disadvantages one is that you are displaying credit hungry behavior and the second is your credit score will come down even if you are capable of repaying the credit on time. how to improve credit score immediately.

7. Check your credit score thoroughly and rectify the mistakes.

       How to improve your credit score? monitoring your credit score throughout the year is very important because this will tell you exactly if there are any inconsistencies. At times CIBIL may make mistakes if you notice any inaccurate information in the form of defaults or delay in payments you can appeal to your bank or CIBIL to get the situation corrected. This could improve your credit score if it's less than usual it should be. Just adding our basic details like Name, e-mail, DOB, PAN, Aadhar, your credit score will increase by following these tips will increase your credit score to more than 700 in a year. How to improve credit score quickly. How to improve credit score fast in India

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Also, read: These the best banks to get a personal loan