Want to improve the cibil score or Do you do not know how to improve the cibil score? Or do you want to apply for loan but not able to do so because you are very low on your cibil score and you still need loan for some reason. So, with increasing of your cibil score you can get loan. But now the question comes in mind that how to improve the cibil score? Well, we do have the answer of this question but before understanding that how to improve cibil score you should know that how it works.
First need to understand what is the cibil score?
Cibil score stands for – Credit information bureau India Ltd.
Your Credit Information Report (CIR) plays a vital role in the loan process and due to which a lower score can impact your chances of a loan approval. Cibil score is your score card that how you manage your credit or you can say how’s your connection with the bank. If you have good connection mean high score then they will give you the loan otherwise not and if you have had a bad credit history and you want your CIBIL score to improve then it is very important to understand the options that you have. Going to a “credit repair” company and paying a large sum of money may not be the best solution but here we will give you some tips which will help you out to improve your cibil score.
Let’s have a look what decrease your cibil score and according to that situation
What can you do to improve cibil score–
- Incorrect CIR Report or cibil report due to incorrect information – If you figured that there are some discrepancies in the report then first you need to check or investigate your Credit information report. You can check here “STEPS” that how to check your report. You can correct the discrepancies in your report by fill up the online cibil dispute form.
You can check information like:
- Account type
- Open date/Close date
- Sanctioned amount
- Asset classification
- Current balance
- Your Personal identifiable information
- Evasions on the payment triggered either due to:
- Genuine financial hardship – If you missed any payment due to any condition like unemployment then we would suggest you to pay the complete amount whenever you are capable to do so but as soon as possible. Because this type of issue can decrease your score rapidly.
- If you missed your payment due to relocation –
if you are relocation then it would be better for you to pay your all dues from your Site.
Some time unintentionally we miss the dues on time with bank so if your moving then close the account post full payment r transfer the loan to another active account. Through which you can maintain your cibil score. But suppose still you missed somehow then we will suggest you pay the amount in one go.
- You missed the payment because you have not received the statement –
Sometime we do not receive the statement on time just like you receive the electricity bill after last date then you have to pay late charge as well. Same condition is here but little bit critical. As per credit card companies it cannot be the reason for payment missed. So, our advice to you that always stay in touch with the credit card companies for latest reports.
- Clashes with the lender on account of charges or annual fees –
Always read all the terms and conditions of any loan providing companies or credit card companies before applying for their services. There are too many kinds of charges like “late fees, penalties, overdue charge, maintenance charge, pre closure, interest etc.
To prevent any kind of clashes please go thorough all the policies.
- Fraud activities –
If some fraudulent activities happened with your account then contact the bank immediately and they will investigate and provide the best solution for it and through this way there would be no or minimum effect on your account.