We often face problems during
applying for loans in banks because of a weak CIBIL score or bad CIBIL score.
There might be some cases where our loan wasn’t rejected but we had to go for
some unpopular loaning organization (like NBFC: non-banking financial company)
or bank. This might cost us a heavy rate
of interest.
Whether you have a bad CIBIL score
or you wanted to maintain your CIBIL score you need to know the trick. So today I am here with 10 simple and easy
steps to make your CIBIL score more attractive.
Step 1: REGULARITY ON EMI PAYMENT: If you have taken a loan from any organization, make sure you pay your EMI on time. EMI payment on time without skipping makes your CIBIL score a step ahead. If you fail to do so then the CIBIL score with automatically go down.
The more EMI you fail to pay, the more critical situation you have to face in your near future. if you have a long tenure loan pay your EMI and your CIBIL score will improve
.
Step 2: AVOID SETTLEMENT: Suppose you have taken a loan bank and unfortunately your financial situation isn’t good. In this scenario, the most likely outcome is that you fail to pay off your loan. slowly you missed many Emi’s and finally, the bank knocks on your door with an easy solution of settlement.
Never go for the settlement, this might make your CIBIL score bad. in near future, you are definitely going to
face a problem. So, it’s better to pay of your loan and outstanding interest and
clear off settlement status from CIBIL report.
Step 2: AVOID SETTLEMENT: Suppose you have taken a loan bank and unfortunately your financial situation isn’t good. In this scenario, the most likely outcome is that you fail to pay off your loan. slowly you missed many Emi’s and finally, the bank knocks on your door with an easy solution of settlement.
Never go for the settlement, this might make your CIBIL score bad. in near future, you are definitely going to
face a problem. So, it’s better to pay off your loan and outstanding interest and
clear off the settlement status from the CIBIL report.
Step 3: PAY OFF CREDIT CARD BILL: If you own a credit card, please make sure
that you pay off your credit card bill on time. Delay in payment with giving you
two disadvantages, firstly it will be seen in your CIBIL report as due payment
and secondly it will show delay payment in the tenure section. Proper credit card
payment will boast your CIBIL score, it’s an algorithm rule in CIBIL. Some customers face proper low CIBIL score
problems even after correction. So, I would like to recommend you take a secure
credit card in order to increase your CIBIL score but the main point is the timely payoff.
Step 4: Change your borrowing habit: Don’t take too many loans. I have seen many customers who take many small loans from a phone app and they pay them back without fail. These customers are not aware of the fact that even if they pay off the debt on time, their CIBIL score will be bad.
In this case, it's better to
take one personal loan with good tenure. It will spike up your CIBIL score. You
can even go for a mortgage loan, don’t go for too many personal loans. it won’t
help you. The mortgage loan has huge tenure and the rate of interest is less. Take a
mortgage loan and transfer the amount to your personal loan account.
Step 5: DON’T BE A GRANTOR: we often help our close friend or relative by stepping up as a grantor. We think this won’t be big deal. But you are missing the point, in the eye of the bank you are equally a borrower.
If by any chance your friend or relative fails to pay off, it will bring your CIBIL score down and will be highlighted in the report. I have many clients who say that the following loan wasn’t his/her and want me to remove it from their CIBIL but it does work that way. So be very sure before becoming someone grantor.
Step 6: Reduce rate of enquiry: We also face some financial problems,
and the first thing which we do is run from one bank to another for a loan. The
best option for you is to ask for the required CIBIL score and other
criteria and then apply for a loan. Don’t apply for loans in many banks, you might
not be aware but this is recorded in their system and will reflex in your CIBIL score.
Step 7: Length of tenure: Always go for long tenure loans. Advantages of
long tenure loans are first you get a low rate of interest, secondly, you buy some time between Emi payments, which gives you time to repay easily and this long tenure
loan fetches u an easy score boast in your CIBIL report. So always take a long
tenure loan and be safe side.
Step 8: Don’t misuse your credit card limit: it's human nature to always exceed
the limit and get in trouble. So, in this case, using your full credit limit
might make your CIBIL score downward sloping. Never exceed your limit and try
to use just 50% of the limit. If by any chance it increases, try paying it off
and resetting it back to 50% or below. This is good for your CIBIL score.
Step 9: Pay off overdue: If you are taking any loan from a bank, then make sure you pay them timely. If you fail to do so then it will be marked as overdue.
Overdue isn’t a good remark in your CIBIL. Not paying the bank for a long period of time might
change the overdue status to written off. This will definitely impact you and
your CIBIL score. Clear off your due and
clear overdue status/written off for positive impact.
Step 10: Correct your CIBIL report: this is the most important and vital point. You need to check your CIBIL from time to time. This will help you know if there is any error in the CIBIL. There are times when details are wrongly mentioned in your account or information about your loan is not updated.
This will seriously
damage your CIBIL score. Check the errors and inform the CIBIL board or credit team
and get them fixed or else problems may arise in future.
Here are
some errors.
a) Someone else loan account is shown in
your CIBIL.
b) You paid off the loan but the status
showed overdue, written. even if u have NOC from the bank. This happens because the status wasn’t updated from their end.
c) There might be some personal details wrong like pan number, phone number or address (home and office).
So my dear readers
follow this easy step and keep your CIBIL score sky high and you will never
need to worry again. I will be back with other CIBIL-related problems and
remedies.
Read More :
1. Improve CIBIL score from 0 to 750+
2. How to raise a dispute in the CIBIL report?
3. Howto download CIBIL report (Free) CIBIL report in PDF format?
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