5 Ways to Increase Your CIBIL Score and Get a Quick Personal Loan - Loan Trivia


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Wednesday 24 July 2019

5 Ways to Increase Your CIBIL Score and Get a Quick Personal Loan

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Your CIBIL score plays a vital role when you apply for Personal Loans. This is because it is used by the lenders to judge your creditworthiness and ascertain how reliable you are as a borrower, especially for a collateral-free loan like an Instant Loan. 

In order to get a quick sanction, work towards a CIBIL score range above 750. This will help you get fast approval for a Personal Loan on higher loan amounts at lower interest rates. 

If your CIBIL score is getting you down, the first thing to do is to boost your score, and then regularly check your credit history to stay informed. Furthermore, taking a quick Personal Loan from NBFCs will let you enjoy benefits such as simple eligibility criteria, minimal documentation, instant processing, and interest-only EMIs with the Flexi Loan facility. But, before you apply for a loan, here is how you can increase your CIBIL score. 

Pay Off Existing Debt 

Outstanding credit balances that are due to be paid contribute significantly to CIBIL score calculation and can negatively affect the same. Whether you have existing debt in the form of credit card bills or outstanding loan amounts, it is best that you work on repaying it before you borrow a Personal Loan. Missing EMIs and having outstanding debt can have a negative impact on your credit score and repaying them increases your score. 
Must Read: 4 Steps to Improve Your CIBIL Score

Maintain Old Credit Cards 

An old credit card displays your long-term credit history. Keeping your credit usage to a minimum here and paying dues on time helps prove you are financially responsible. So, instead of closing your old credit card account, maintain it to boost your credit score. 

Limit Credit Usage And Avail Enhanced Credit 

Despite having a higher limit, it is important to keep your credit usage to a minimum. In doing so, you prove that you are not credit-hungry and are able to live within your means. This also shows lenders that you aren’t dependant on credit. Staying below 70% of your credit card limit can instil financial discipline in you and curb your spending habits while positively impacting your CIBIL score. If you need to use more than 70% of your existing limit, simply ask for your credit limit to be enhanced. 

Avail Mixed Credit 

Instead of only opting for one type of credit, introduce mixed credit into your credit profile. Having a balance of secured and unsecured forms of credit proves that you have the experience necessary to financially manage any form of credit. This increases your score. 

Get A Secured Card 

You can choose to avail a secured card to improve your CIBIL score up a few points, especially when you have a low score and don’t get credit card offers. Get these secured cards from leading banks to substitute a regular credit card. These secured cards are offered against fixed deposits of nominal amounts. When you ensure timely repayment you will see your CIBIL score increase.

Plan your repayment in advance to make timely EMI payments, thereby increasing your credit score and increasing your Personal Loan eligibility. While you boost your CIBIL score, you can check your pre-approved offer for a Personal Loan as well from NBFCs and enjoy funds up to Rs.25 lakh at nominal interest.
Read More: Five Financial Habits that are Good for Your Credit Score

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