A credit score is a three digit number which determines if you are credit worthy to your future lenders. It’s an easy process to get your cibil report done and get a loan if you are in the higher side of it. On the other hand if you lie on the lower side of credit score it’s not only hard to get a loan but also is hard to get through other aspects of life where a credit score check is done. Now, you must be thinking, a credit score is only important in finance world why should I be bothered, if I am not planning to take any loan in near future. This is where you are wrong; a credit score is used by many entities to check if you can manage your finances properly.
Let’s take an example here, you are seeking a job change and you’ve been after this job from a very long time. You finally get a hit from the company human resources and get through all rounds of interview with ease. Now when it comes to background verification, you realize that a cibil check is also on the verification list. This gets your heart pumping, because you know that your bad cibil score can cause you a problem. Background verification is conducted and you learn that you are not offered a job because of low cibil score.
You are really disappointed and are now scraping through the internet on how you can get your cibil score up in no time. Unfortunately, you do not get an immediate method to it and learn that it’s a slow and gradual process. You decide to act on the same and start rebuilding your cibil report.
Here are ways you can rebuild your low cibil score,
This is like the very basic thing you can do to get your cibil score up in no time. You surely ought to have a lot of credit accounts; you just have to make all your payments on time. The lender than passes your good payment behavior to the credit bureaus and these financial transactions are recorded as good transactions which helps you get your score up.
Once you know that there is a good chunk of money flowing in the near future, try reserving that money for paying off your current debt. This way you not only save a substantial amount of money on the interest part, but also will get your credit score up in no time. Closures of account, not only indicates that you are serious about your loans but also are serious about keeping the credit mix at the low. This is a good sign for your future lenders.
If you happen to hold a credit card, try keeping the limit usage to the lowest and only use it if you are in need and you do not have any other option. Keeping your maximum limit open can help you get your cibil report to a positive.
Many people make this mistake of paying the credit card in full and closing the credit card. Do not make this mistake, you should not close any credit account, instead a good credit mix with regular payments on the account can boost your chances to get your credit score up in no time.
It’s better to get all your planning done before hand, so that you do not see a dip on the report.