Tips to boost CIBIL score: A credit score is a three-digit number that is significant in personal finance. In India, CIBIL (Credit Information Bureau (India) Limited) is a leading credit bureau that assesses the creditworthiness of individuals and companies based on their credit histories.
CIBIL assigns credit scores on a scale of 300 to 900, which is crucial in determining an individual’s or company’s eligibility to access credit facilities such as loans and credit cards at favourable terms.
A higher score indicates good financial health. It makes it easier for individuals to access credit facilities such as loans and credit cards at favourable terms. On the other hand, a low credit score can pose challenges to obtaining credit or may result in higher interest rates and less favourable terms.
A CIBIL score of 750 or higher on a credit report is ideal since it increases the likelihood of qualifying for personal loans and credit cards. Contrarily, if the CIBIL score falls below 685, obtaining funds from banks and NBFCs may be more difficult.
As a result, enhancing one’s CIBIL score is a common financial goal to reflect responsible credit behaviour and facilitate better access to credit facilities. As boosting one’s credit score requires consistent financial discipline over time, here are six smart tips that can help boost one’s credit score within thirty days and enhance one’s creditworthiness and financial standing.
1. Make on-time payments:
Paying the bills on time is fundamental to maintaining a healthy credit score. Making payments on time shows creditors that one is reliable and financially responsible. This helps to build a positive credit history and can improve the credit score. On the other hand, late payments can harm the credit score, potentially leading to higher interest rates and limited access to credit in future.
2. Keep credit utilisation low:
Maintaining a low credit utilisation ratio is crucial to improving the credit score….
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