June 17, 2024

5 quick heals for your injured CIBIL credit score!


An unplanned CIBIL credit score can adversely affect your financial and personal condition. A person whose CIBIL scorecard is 630 and he is finding difficulty in grabbing a home loan from the various banks as they are not ready to lend him a loan at this scoring rate. He has an option of borrowing money from the private lender, but then they are charging outrageous rates and even their credit terms are poor. Here are a few tips and tricks to rebuild your scorecard.

Restrict your debts- debts are one of the most influencing factors which lower downs your CIBIL score. Try making it less which will eventually increase your scorecard. In case you are spending more than your credit limits then you are at higher risk to lenders as compared to the person who possess the same credit limit but his limit is, lesser than yours. So if you are seriously planning for a home loan then reduce your credit limits and pay them off as soon as possible( if any )…

Timely payments- a person who doesn’t make timely payments is tend to ruin his CIBIL score. To deal with this you should set an alarm that will alert you with your outstanding payments or try using automatic bill payment. To further ease your way there is the facility of online payment for clearing your outstanding dues on time. Any charges or late fee fines will cut down your credit score. If you are able to pay off your debts within 30-60 days then undoubtedly your CIBIL will show a remarkable shoot up. Make it a point that your payments are not overdue for more than 90 days; if it happens so then it can disturb your CIBIL score for the coming 2 years.

Rectify your mistakes- keep a close check on your CIBIL report regularly and if there is any mistakes then try to rectify them at the earliest. If there is any discrepancy then immediately inform your bank or credit bureau so that immediate action can be taken beforehand. Be ready with all financial statements and papers so that these proofs can be provided at the time of need for the earliest rectifications.

Enquire your previous lender- in case your loan has been denied; try asking the reason behind it and then rectify it at the earliest. This will uplift your scorecard quickly.

Have tolerance-incase your loan has been rejected at one bank due to a low CIBIL score then don’t feel disheartened. Don’t apply in various banks with the same scorecard otherwise, you are likely to face repeated rejections. Wait for some time and spend this time improving your CIBIL score. After improving, apply for the loan with an updated score. Though 750 is an excellent scorecard to get started with the home loan eligibility amount.