The Credit Information Bureau (India) Limited (CIBIL) was founded in 2000 to keep track of repayments made on personal loans and credit cards. They gather information from member banks and credit institutions and assign a number between 300 and 900 based on your Credit Information Report (CIR). This number is called the credit score, based on which financial institutions evaluate and approve loan applications.
With a higher CIBIL score, you can avail personal loans easily at much lower rates of interest. Follow the below listed methods to increase your score easily:
Paying dues on time
Delayed payments on loan EMIs and credit card bills affect your credit score. You need to be very punctual when it comes to paying your dues to the bank every month.
Balance between Secured and Unsecured Debts
Having a mix of secured and unsecured debts gives you a diverse and healthy financial portfolio which bodes well for your CIBIL score.
Judicious Use of Credit Cards
Multiple credit cards put you at a higher risk of ending up with debts. To be on a safer side, it is better to be judicious about the number of credit cards and the usage.
Using Cards of Previous Accounts
Using the credit card of older accounts and being consistent and punctual with the repayment will boost your CIBIL score.
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