There are so many things you need, but just can't afford. This is why you need a loan. Among all loans, the home loan is perhaps the most important. The home loan gives you a house, the most important asset you will ever own. A house is an asset which gives you a roof over your head and appreciates in value with time. Imagine if your home loan is denied? This can happen if you have a bad credit score.
CIBIL maintains a record of loans availed by you and other citizens from banks or NBFCs. You are assigned a credit score, which is a 3 digit number, ranging from 300 to 900. Your CIBIL score depends on the number/type of loans you have availed and your repayments (credit history).
Now, what if you have a bad credit score? Are they any ways to boost your credit score? Want to know more on car loans and personal loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
Do you have a bad credit score? This is not the end of the World. There are ways to boost credit score and make sure your loans are sanctioned.
Your Credit information report (CIR) from CIBIL contains your basic information, details on the loans you have availed, repayment history, loan amount outstanding, current status and so on. CIR also contains details on enquiries made by banks and financial institutions on your credit report. Banks submit your credit information to CIBIL.
Along with this banks also submit personal information like name, address, PAN, date of birth and so on. These details are entered manually and there are chances of an error.
Check to see if all loan accounts in your CIR, belong to you. If you find a personal loan or any loan/credit card you have not availed reflecting in your account, initiate the Dispute Resolution Process.
Check your CIR thoroughly and if you find any mistakes, report it to CIBIL immediately by raising a dispute.
SEE ALSO: 4 Common Myths On Cibil Score
If you have availed a lot of loans and credit cards, banks see you as credit hungry. Banks believe that you run your life on loans. This reflects in your CIR and your CIBIL score reduces. You will not be able to avail a home loan to buy a home.
If you have a lot of credit cards, increase the credit limit on 2-3 of them. Then close down the other credit cards. This way you enjoy the same credit limit on a lesser number of credit cards. Your credit score goes up.
SEE ALSO: How To Get My Cibil Report Online?
An easy way to improve CIBIL score is not to utilize your credit card limit to the fullest. Let's say your credit limit is Rs 50,000 a month. Every month you use Rs 40,000 or 80% of your credit limit. Even though you have your finances under control, banks view you as credit hungry. Your CIBIL score goes down.
Make sure to keep utilization of credit limit around 30-40%. This way you will be able to boost credit score.
Keep your Financial Cognizance up to date with Wealth Doctor App.
Are you struggling with loan repayments? This is when a friend gives you a brilliant suggestion. Why not get into an agreement with your bank for 'settling' credit cards or loans for an amount much lower than the original payment due?
This might look like a great idea, but it can be a nightmare. You will be blacklisted for 7 years. You will never be able to avail a loan or another credit card.
These are 4 simple ways to boost credit score. There are a lot more ways to boost credit score. We will discuss these ways at a later time. Be Wise, Get Rich.
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