Jan 24, 2025, 09:14 AM IST
Here is a guide of how to improve your CIBIL score
Consistent use and timely repayment of credit are essential. This behaviour demonstrates reliability and responsibility to potential lenders, thereby positively influencing the credit score.
Serving as a guarantor can be risky, as the primary borrower’s default will adversely affect your credit score. It is advisable to agree to such arrangements only if you are certain of the borrower’s financial stability and repayment capacity.
Applying for multiple loans within a short time frame can be perceived as a sign of financial instability by lenders, which may result in a lower credit score.
By obtaining a higher credit card limit while maintaining the same level of expenditure, you can lower your credit utilisation ratio. This lower ratio will gradually lead to an improved credit score.
It is crucial to do a credit score check and know its limitations. It is recommended to keep your credit utilisation below 30% of your available credit limit. This practice signals responsible credit management to lenders.
It is crucial to make timely payments for your credit card bills and loan EMIs. Delinquent payments are a major detriment to one’s credit score.
Regular review of credit card statements and credit reports can help identify errors or unauthorised transactions that may harm your credit score. Prompt action on any discrepancies is vital.
This information is not DNA's opinion but obtained from media reports