- The first thing is to thoroughly review your cibil score. A thorough updated review is the first and most important thing.
- Understand the factors which affect your cibil scores. Your bill payments, credit utilization, the number of credit amounts you have recently, the time duration when you are using your credits and also your recent applications which are your hard inquiries.
- However alongside checking the factors check if there are any fraudulent accounts opened with your name which are affecting your score.
- Payment History
You must know that your payment history is the highest contributing factor to your cibil score.
- If you are unable to keep a track of all your bills then opt for autopay for all of your standing bills. In that way you will avoid having a negative impact on your cibil report if you miss deadlines. Your bill will directly be paid from your bank account.
- If all your due dates are on the same date, change the dates, and remember the dates carefully if you don’t want to choose for autopay. Make a checklist of all of your bills.
However if you are exceeding the credit limit of 30 percent it is having a negative impact. Understand your credit utilization rate.
- If you haven’t been able to pay all of your credit card bills are carrying a debt it is essential to clear all of your debts as soon as possible.
- Understand debt avalanche and debt snowball methods and make your choice.
Choose whichever you find comfortable and make the required payment.
- Speak to an expert and decide whichever other options you have like even a balance transfer credit card.
- Do not apply for new credits
If you are focussed on increasing your score, do not apply for new credit.
- When your lender makes a check on your financial report, this application for several credits, while having numerous recent credits, becomes a negative thing for your cibil score.
- A hard inquiry is when a lender checks your credit. Hard inquiries are much more serious than soft inquiries.