A credit score plays an important role in your life in ways you can never think of. Like, when you are applying for a loan or a financial product, the three digit number will give a graphical representation to the lender if you are credit worthy or not. Also, when you apply for a job, the employers keep this term of checking your credit score just to understand if you can manage your finances right.
It can be one of the curtail checklist to determine if you are credit worthy or not. Now that you know what is the importance of a credit score in your personal and financial life, have you ever checked if you are in the category of a low cibil score? if not, try getting your free credit report and check if you are in the category of a low cibil score and try to fix it.
Imagine you understand that you lie in the low credit score category and some emergency erupts in the family and you are in urgent need of cash. You start asking your friends and family for the same and you do not get a positive answer. The only option you are left with is to get a loan, but understanding your current situation of low credit score, you know that no bank will give you a loan. By some means, you manage to arrange funds for yourself and handle the situation. Back of your mind, you think that you need to take measures to make sure such a situation does not happen again.
Today we will sight you six effective ways to fix your low cibil score,
Make Sure Your Credit Reports and Score Are Accurate
There are times when your score is low because of no fault of yours. The credit bureaus make such mistakes while making the credit entries. Make sure that there are no errors on your report and if you find one, raise a dispute on the same and get it amended.
Planning is everything here. You will have to make an effective plan to get your score up. The plan should include your financial action and the way you will implement it. A proper plan can lead to score improvement in short span f time.
Are there any late payments on your account? Fix them right away! A late payment can cause a lot of damage to your report and multiple late payments are the worse. You need to identify and start fixing your late payments so that you do not see any further dip on your cibil score.
Credit cards are always better than personal loans. If you have an opportunity, try opting for a credit card. A smart usage of a credit card will not only help you get your score up in no time but will also increase your credibility in front of your future lenders.
If you know that you are in the lower side of the credit score, there is no point of applying for any loans or financial product. Lay low and avoid applying for loans until you do not see a spike on your cibil score.
If you happen to use a credit card, make sure you understand how much you need to spend from it only on your needs. Fix a ratio of utilization and stick to it. This will help you keep a tap on your expenses and also get your score up for less credit utilization.
The credit report will not amend itself until you are not willing to take efforts to do the same.