How can you quickly improve your credit score?

 

Improving your CIBIL score quickly can make a big difference, especially if you're planning to take a loan or apply for a credit card. A good score can open doors to better interest rates and more financial options. Here’s a friendly guide to boost your score fast:

·        Check your credit report:

First, understand your current situation. Get a copy of your CIBIL report and check for any errors or discrepancies. Mistakes in your report can drag down your score, so correcting them can give an instant boost. If you spot any inaccuracies, report them to CIBIL immediately.

·        Pay your EMIs timely:

Always pay your bills on time. Set reminders or automate payments to ensure you never miss a due date. Consistently timely payments build a positive credit history, which is crucial for a good score.

Next, focus on paying off your debts. If you have any outstanding credit card balances or loans, prioritize paying them down. Even a small reduction in your debt can positively impact your score. Try to pay more than the minimum amount due on your credit cards to reduce your overall debt faster.

·        Maintain a low credit utilisation ratio:

Maintaining a low credit utilization ratio is key. This means using less than 30% of your available credit limit. If your credit card limit is ₹1,00,000, try to keep your spending below ₹30,000. If possible, spread out your spending across multiple cards to keep the ratio low on each one.

Another quick fix is to ask for a higher credit limit from your bank. If approved, this can instantly lower your credit utilization ratio, provided you don’t increase your spending.

·        Avoid frequent credit applications:  

Finally, avoid applying for new credit frequently. Each application results in a hard inquiry on your report, which can temporarily lower your score. Be selective and only apply for credit when absolutely necessary.

 

By taking these steps, you can see a noticeable improvement in your CIBIL score. Remember, it’s about managing your credit wisely and making informed financial decisions. Keep an eye on your report regularly and stay proactive in managing your credit health.