Increase CIBIL score from 550 to 750+ | CIBIL score calculation method

 

The topic for today’s discussion is how to increase your CIBIL score from 550 to 750+ and also how TransUnion CIBIL calculates the CIBIL score.

 

Naskar financial services expertise on how to correct your CIBIL and how to improve your CIBIL score. many customers come to me and request that their CIBIL score has gone down from 650 please boost it to 750. 

Then they will be eligible for getting loans from any financial service or banking sector at a low rate of interest. Other customers request I boost their CIBIL score to 720/730 from 620. 

Customers whose score has gone down to 500 they want me to raise it to 700 at least.

 

Now the problem is that we can’t push or pull CIBIL score from any side to raise it. TransUnion credit bureau has its own algorithm to calculate the CIBIL score on the basis of customers’ loan history provided by different banking and financial sector. 

TransUnion credit bureau doesn’t disclose its algorithm process to general people. But they have given us a little overview on how they mark CIBIL score for an individual customer.

These are some of the points they focus on:

1.    Loan repayment history: when you take a loan from any bank, you should always pay off its Emi on time without failing. This repayment can fetch you up to 30% to 35% CIBIL score from the TransUnion credit bureau.

2.    Credit Exposure

3.    Credit type and duration

4.    Others

The above-mentioned points are vital for your CIBIL  score marking. But how much will they score on the points it’s hard to say.

From my personal experiences, I will share with you a slight idea of how this CIBIL bureau marks you.

Once I took a small loan and after paying 3 instalments, I found out that my CIBIL  score is about 720+. After completion of all my instalments, my score got raised to 750+. 

I have seen a few clients of mine who have taken just a single personal loan, paid its due properly and their score stands 780+.

Now you might wonder why you have taken so many loans (car loan, home loan, credit card loan) still your CIBIL score is downward sloping. The reason is that taking a huge number of loans isn’t the key to a good CIBIL score, but paying it off without missing a single day is the ultimate key.

If your CIBIL score has reached below 550. then the reason is that your repayment structure is bad. You are missing your Emi’s payment dates and you may even fail to pay off the amount taken as a loan. 

Your CIBIL may should this status write off, due payment and maybe you have gone for settlement.

Once you get your CIBIL report check for the given points in your CIBIL report, and you yourself will see the loopholes.

I have made a video on how to correct your CIBIL report on YouTube. Check the video for further guidance. The link is given in the description.

   The more you delay your Emi’s the score will sink to the ground. In this way, your loan account will reach the write-off stage and then your CIBIL score will be really bad.

Things that can be done to enhance your CIBIL score are as follows:

1.    Clear your due amount: one of my clients delayed his loan payment. Hence his CIBIL overdue status was shown and the CIBIL score got down. But the main thing is that customer wasn’t aware of this overdue status.

     When I saw his report, I pointed out the problem and suggested he pay it back. As soon as he cleared off his overdue payment his CIBIL score spiked up.

2.    Credit card write-off: one of my clients came to me with a CIBIL score of 620+. She said that she had taken a credit card loan from SBI and failed to pay it off. Hence bank has marked it as a write-a off. 

     She wanted to clear the status which will raise her CIBIL score to 720 and will be eligible for a loan.  After going through his report, I suggested she pay off all the amount. Then within 45 days, her CIBIL score reached 720+.

3.     Delay payment status not removed: one of my clients took two different loans from two banks. SBI credit loan and HDFC auto loan. She didn’t pay off the loan in both cases, irregular payment and hence led to delay payment.

     I suggested that pay off the HDFC loan and the due amount. That got her 25 hikes on the CIBIL score. but the main problem is that in some cases banks don’t prefer removing the CIBIL payment status from the CIBIL report. Hence the score didn’t raise to a higher mark. 

Now the bottom line is that the only way you can raise your CIBIL score is by paying off your debts. Remove all statuses like overdue, settlement and write-off from your CIBIL report. 

Only doing this won't fetch u a good CIBIL score. you might have to take a small gold loan and pay off its Emi on time and properly. 

Then you should also take a credit card loan and pay its EMI on time. In this way, your CIBIL score will be slowly raised to the top.

 

How to rectify your CIBIL report, I have made a video on YouTube. Go ahead and check it. link is given in the description below.

You can contact us if you face any challenges with your CIBIL report correction or CIBIL  score. 

Read More:

1. Improve CIBIL score from 0 to 750+      

2. How to remove "written off" status from the CIBIL report 

3. How to remove Post Written off Settlement from the CIBIL report