Steps for increasing your CIBIL score are as follows:
1. Check Your Credit Report Frequently: Review the CIBIL report for inaccuracies or incorrect information and get them corrected, if any.
2. Pay Your Bills on Time: Pay loans, credit cards, and bills timely to avoid bad marks on the credit report.
3. Low Credit Utilization: Try to use less than 30% of your available credit limit on credit cards for maintaining a good credit utilization ratio.
4. Healthy Credit Mix: A balanced combination of credit cards, personal loans, and other types of credit will have a positive impact on your score.
5. Avoid too many Hard Inquiries: Applying for credit within a short time period can negatively impact your score since each one reduces it by a little percentage.
6. Increase your Credit Limit: Ask for an increase in the credit limit as this will automatically decrease your credit utilization ratio when your spending doesn’t change.
7. Pay off Debts: Reduce the outstanding balances on your accounts as this is bound to help your credit score improve over time.
8. Avoid Closing Old Accounts: The longer your credit history, the better it reflects on your score. Keep older accounts open even if you’re not using them.
9. Consider a Secured Credit Card: If you’re building credit, a secured credit card can help demonstrate responsible credit use.
By consistently following these steps, you can gradually improve your CIBIL score.
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