CIBIL score is one of the essential factors that lenders mandatorily consider at the time of approving a loan. Hence, all the lending institutions evaluate a borrower’s loan repayment ability based on it. Therefore, borrowers who are planning to avail a loan should take special care about their CIBIL report correction. It will help them monitor their credit score as well as rectify errors present in it.
What are the strategies to elevate your CIBIL score?
Individuals can consider the following points to know how to improve their CIBIL score:
- Clear existing debts
In the cases where any lender notices an outstanding debt on a borrower’s CIBIL report, it always impacts their CIBIL report negatively, reducing the chances of loan approval. Hence, borrowers must repay all their existing loans within the stipulated timeline or make prepayments, if possible, to elevate their credit score.
- Pay EMIs on time
It becomes difficult to get loans approved when the CIBIL reports of the borrowers reflect the number of days they delay paying their EMI. Such delays in paying EMI can bring down the score. Therefore, when individuals are assured their bank accounts have enough funds, they must consider opting for the automatic transfer option.
- Opt for a mix of credit
If an individual can show a loan repayment history of mixed credits, which includes secured loans like home loans and unsecured loans like personal loans or loans of short and long tenors, it helps boost CIBIL score. It reflects their ability to repay mixed kinds of credits successfully.
- Avoid taking multiple loans at one time
Opting for multiple loans at the same time can result in having insufficient funds to clear all debts. It can eventually lead to the crashing of their CIBIL score. Therefore, it is desirable to opt for a loan, only after repaying the existing ones successfully within the chosen timeline. It will save the CIBIL score from decreasing while boosting it as a result.
- Report discrepancies in the credit report
A CIBIL report can sometimes contain discrepancies, which include mistakes in the payments etc. Such discrepancies may arise due to many reasons like miscommunication, but can bring down the CIBIL score. Hence, to boost the same, it is necessary to get those resolved as quickly as possible and pay attention to CIBIL report correction regularly.
How to check the CIBIL score online?
Borrowers can check their CIBIL score calculation online, where they can have access to their credit report. The following are the steps to do the same:
Step 1: Visit the official website of CIBIL.
Step 2: Click the “Get your CIBIL score” option.
Step 3: Type in the required details such as name, email ID, Aadhaar number, password etc.
Step 4: Select “Accept and continue”.
Step 5: Individuals will receive an OTP. Type in the OTP and click “Continue”.
Step 6: Click on the “Go to the dashboard” option.
Step 7: Once individuals are redirected to the website they can click the “Member Login” option to check their CIBIL score.
What is considered a good CIBIL score?
The following are the CIBIL score ranges, given as what is considered good to poor credit health.
CIBIL score range:
- 300 to 499: Poor
- 500 to 649: Fair
- 650 to 749: Good
- 750 to 900: Excellent
Several lending institutions provide their existing customers with certain pre-approved loan offers. These are based on the borrower’s credibility. These are applicable for home loan, loans against property etc. Individuals can check those offers by entering their names and other details on their lender’s website.
Therefore, to elevate a CIBIL score, every individual needs to be mindful of their payments, and debts, and ensure their CIBIL report correction in case they find errors. If borrowers are aware of the factors affecting it, they can act accordingly to increase the same.
