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Are you anxious about your Cibil Report? Are you worried about your home loan? Atul, an associate of mine was complaining about how his bad cibil score gravely affected his loan. Only after he had spent considerable amounts of time fixing the report, his application for a loan sailed easier. Cibil reports help lenders in understanding about you. The first step to fixing your cibil score is understanding the errors you might be making without unknowingly. It is very important to understand the factors which make up the cibil score. Identifying and realising the mistakes that might have contributed to a poor score is essential.
How to repair poor Cibil Score? Secret Tips
What do you need to know about Cibil Score?
- Your Cibil score can range anywhere between 300-850.
- The score depends on several info information in the credit report.
- If your score is 700 or below you need to work on the score.
- If your score is higher than 800 it is excellent.
- However, low your score is there is hope. You need not be overly anxious but have to be alert. You still can improve your score.
- However, to be specific if your score is from 300-580 your score is quite poor. If your score is above 580 to anywhere around 670 it is considerably fair.
- If you have a high score, Then you will have advantages
- Qualifying for credit faster and at better interest rates than others.
- If your CIBIL score is low there are several disadvantages.
- Difficulty in obtaining credits at an affordable rate or even getting approved for loan.
What Do You Need To Do?
- The first thing is to thoroughly review your cibil score. A thoroughly 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.
Exceeding Credit Limit
- However, if you are exceeding the credit limit of 30 per cent 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 focused 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 happens when a lender checks your credit. Hard inquiries are much more serious than soft inquiries.
These Are Some Of The Major Factors Which Affect Your Score Heavily. Make Sure You Research In-Depth About Your Score And Personal Mistakes. Correctly Recognizing Your Mistakes And Working On Them Will Help You Boost Your Score Up.
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