How do I improve my CRIF score?

 

To improve CRIF score (which is also a credit score considered in India), a person has to go through a step-by-step process as well as maintain some financial habits.

 CRIF Highmark is a credit bureau that valuate borrower’s credit eligibility like other credit bureau. Here are steps of the process, which you should follow to improve CRIF score:

1. Check Your CRIF Score

Get your CRIF Highmark credit report and look for any incorrect information reported in it. If there are any wrong details found reported in CRIF credit report, submit a dispute against that as soon as possible. Correcting any misinformation can help improve CRIF score.

2. Pay Debts on Time

Your repayment behaviour is the most significant factor that improves is  CRIF score. Ensure that all the debts (such as credit card payments, loan EMIs etc.) are repaid before the due date. Failure of a single repayment can impact your score negatively. So, to improve CRIF score try to repay debts on time.

3. Maintain Credit Utilization Low

Credit utilization means the maximum limit that you used of your credit card. Try to maintain your credit utilization minimum (below 30%). If you have high debt balances on your cards, repay them as soon as possible, this trick can help you improve CRIF score most effectively in a short period of time.

4.Reduce Outstanding Debt

If you have multiple credit debts, try to repay them as soon as possible. High debts can decrease your CRIF credit score. So, to improve CRIF score repay debts as soon as possible.

6. Try Varieties of Credit facilities

Having a variety of credits (credit card, personal loan, car loan, housing loan, etc.) can improve CRIF score, but be aware not to take those credit facilities that are not necessary and also take loans as per your affordable limits.

7. Avoid New Credit Application

Each time you apply for a new credit facility, a hard inquiry is reported on your credit report. Multiple enquiries in a short time can decrease your CRIF score very quickly. Only apply for credit facility when necessary.

8. Avoid Closing Old Accounts

The length of your credit facility can improve CRIF score. Avoid closing old credit accounts, as doing so could reduce the average age of your credit, potentially lowering your score.

9. Consider a Credit Builder Loan

If your credit history is thin or you have no credit score, consider a credit builder loan. These loans are designed to help you build or improve your credit score by demonstrating your ability to make timely payments.

10. Monitor Your Credit Regularly

Keep track of your credit score over time and continue following these steps to gradually improve your CRIF score. Regular monitoring will help you stay on top of any changes and ensure your efforts are paying off.

By following these steps consistently, you should be able to improve CRIF score over time. The process can take a few months to a year, depending on your current score and financial situation, so patience is important.