Credit Score is most talked and looked at number these days. For some it is a terror, for some, its a boon. But it is individual's behavior which makes him/her credit healthy with the credit score as a boon or credit weak with the credit score as a terror. But, the mistake once done can always be rectified. If your credit score has dropped down, you always have remedies to increase it. But, you definitely have to be genteel and patient.
First of all, what you need to know is: what are the reasons for the drop in your credit report. There can be various reasons, Delayed payment of your credit cards, mishandling the credits you have, Not taking the delayed payments of loan seriously, not closing or settling the account where the payments have not been made, Identity theft as in some must have stolen your card or they have taken your details of KYC and misused it in order to buy a huge amount of loan or shopped massively. Whether it is your mistake or some one else's, but the credit score is yours. SO you need to take the measures and start acting on them.
Let us take the scenarios one by one and the simplest thing we can do to make your score better!
First of all, know the reason why you are making delays in the payments. Is it because you have become reckless in the funds available to you and you are spending it without imagining the responsibility on you? If that is the case, please pause, and see when it is taking you. Make the regular payments plus a little more to get off the older debt from your head. Eventually, try to increase your source of income so that you can spend the way you want along with the loan or card's payments.
Or for the second case, you genuinely are stuck somewhere badly and are unable to pay the EMIs. Suppose you have a huge medical emergency at your end, and all your savings, current money is getting there, please talk to the bank. They will restructure the whole loan EMIs and if its a card, they will give you more time repay the credit with lesser interest rates.
Suppose you have taken any credit card or loan and you are unable to pay the regular amount and even the one with penalty. In this cases, you need to do the settlement with bank, agree upon an amount, pay it and close the account. There are different norms with different banks on how it works. Till 90 days of late payments, the interest rates are minimum, but if you cross those and it reaches 180 days, its more. Then, on the delayed amount also there are interest rates. So this becomes a catch 22 situation. However, talk with the bank or the financial institution from where you have taken the loan or a card, agree upon a particular amount, pay it and close the account taking NDC.
Identity theft is making people's life difficult these days. Let us know what is identity theft first of all. It is an antithetical activity of taking someone else's identity and doing the financial activities like taking a loan on some else's name or using their card to get the benefits. Here, you would be unaware of what is actually happening, till the time you get a call from the bank for payments or you check your credit report. To you terror, you come to know this, please raise a dispute in the bureau regarding the same and get those entries off!
In this credit score's world, it is very much required to stay at a score of 700 plus. Mistakes could be made on different stages, but make sure with these simple things you rectify them, so that you do not have to opt the option of loan with low cibil score. Be patient and check your score atleast 2ce in every year to know if the things are in place or there is any need for you to work on them! Stay credit healthy always!