Your financial stability is strongly affected by your CIBIL Score, which indicates your creditworthiness. When approving credit or loan applications and deciding the terms to offer, the bank checks your credit score. A high CIBIL Score lowers interest rates and opens the door to great offers.
Regularly checking your CIBIL Score through an app and free cibil score check services, you can keep track of any errors or mistakes in your score profile. Issues like this may be a sign of fraud, and monitoring is the only way to avoid such issues and address them before they worsen.
Check the status of your CIBIL score frequently to understand how better you can fulfill the bank’s minimum standards. By doing this, you can avoid sending an application with a higher chance of rejection.
How can you avail of a free cibil score check?
Many online platforms, such as the CIBIL website and the Cibil Score App have free cibil score check services. To create an account, you will need to provide information such as your name, date of birth, ID proof, phone number, residence, source of income, etc. Once you have access to your credit report and CIBIL Score, study it carefully to look for any mistakes and understand the elements that affect your score.
Is your CIBIL score good?
Your credit limit, credit requests, repayment history, and the types of loans you have access to are four key elements that the CIBIL score takes into account. A CIBIL Score of 850 or higher is considered excellent and highly creditworthy; a score of 750 to 849 is great, and a score of 700 to 749 is good. If your credit score is 650 or less, you should re-evaluate your position and take the steps required to improve it.
Methods to boost your CIBIL score
Stay calm if you find your credit score lacking after availing of a free cibil score check. There are multiple ways to improve your credit score, such as those discussed below. Following these guidelines can help you boost your CIBIL score and finance loans and credit easily from a reputable bank.
- Repay obligations on time – Your credit history is crucial in calculating your CIBIL Score. You can raise your credit score and avoid late fines by paying your EMIs regularly. Activate autoplay or reminders if you have several EMIs and find it challenging to track them all.
- Spend wisely – The credit you use against the available limit is called the credit utilization ratio. Your CIBIL Score may be impacted negatively by a high utilization ratio. As a general rule, you should maintain a 30% ratio. For instance, if you have a credit limit of Rs. 50000, try to use only Rs. 15,000. Your score drops if you use more credit.
- Manage accounts with care – CIBIL score can be increased if you have a long credit history and consistent behavior. Old accounts with pending credit for which you have not made regular payments should be settled and closed down. On the other hand, you should maintain an account that shows good repayment behavior as it has a positive influence on your score. As already mentioned, use an online free cibil score check regularly to manage your accounts better.
- Be stringent with your applications – Applying for multiple credit lines has several drawbacks. First off, every new application temporarily lowers your CIBIL Score. Thus, several applications can considerably drop your score. Second, banks have access to your inquiry history in your CIBIL profile. Applicants that apply for several inquiries simultaneously are regarded as credit-hungry people. Most banks are wary of this behavior and are less likely to accept your application.
- Check your reports regularly – You must routinely check and examine your credit report that you can obtain from a free cibil score check. This helps in taking the appropriate action promptly. Regular checks also help weed out, and resolve immediately, any reporting error by your bank that could adversely affect your CIBIL score.
Conclusion
A good CIBIL Score can be increased and maintained with discipline and correct credit management practices. The CIBIL website and the Cibil Score App offer free cibil score check services. The aforementioned tips can help raise your CIBIL score and avoid common mistakes that negatively impact your score. Remember a high CIBIL Score gives you greater access to pre-approved funds and amazing offers from your favorite bank
