CIBIL score or credit
score is a three-digit number that represents your creditworthiness as a
borrower. This number ranges from 300 to 900, and the higher your credit score
is, the better your chances of securing credit.
Financial institutions
evaluate this score of every borrower before granting them any form of credit.
Therefore, if you want to avail a loan or a credit card, then it is advisable to keep this
score at 750 or above.
However, not everyone
has a favourable CIBIL score. In that case, they can follow these pointers to
improve their score and become eligible for credit.
5 factors that boost
your credit score
1. Eliminate the existing debt: Existing debts are visible on your credit report,
and until you repay, it affects your credit score negatively. Thus, before you
go ahead with credit card apply
online, it is necessary to clear your existing debt. It will
improve your CIBIL score and subsequently you can avail better benefits on your
card.
2. On-time EMI payments: If you fail to pay your loan EMIs on time, it also negatively affects
your credit score. Therefore, you should start paying your instalments on time
to improve your CIBIL score.
3. Reduce credit utilisation: If you keep a high and steady credit utilisation
ratio, then it portrays you as a credit hungry borrower. Hence, it is advisable
to keep this ratio under 30%.
4. Build credit history: CIBIL score is calculated on the credit history of a borrower. If you
do not have a credit history, you can avail credits build a commendable credit
history. For example, you can avail a small personal loan via personal loan apps and then repay it accordingly.
5. Check for discrepancies: Sometimes your credit score can decrease due to
discrepancies. If you notice any then report it immediately to resolve this
issue.
Before you fill out
an online credit card application,
do not forget to improve your credit score to avoid rejections. Take help
of credit cards apps such
as Bajaj Finserv app
– Experia to apply from the comfort of your home.
Must Read:- Quick
Guidelines to Raise your Credit Score
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