How to improve CIBIL score 550 to 750

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Many people are facing problems getting a loan from banks and NBFC due to their poor CIBIL Score. Many customers are coming to us to get the loan. We are facing difficulty arranging a loan for a few of them due to their bad credit score. So we have to increase CIBIL score to get a loan. Therefore we should know how to improve CIBIL score?

Here a few questions arise:

What are the reasons for the low CIBIL Score?
How to relieve from bad CIBIL Score?
Why Bank check the CIBIL report?
How to increase CIBIL Score?
Is there any wrong information in CIBIL report?
How to get a loan with a low CIBIL Score?

What is CIBIL report?

At first, we must know what CIBIL Score is and what is CIBIL report? The full form of CIBIL is Credit Information Bureau (India) Limited. Now company name was changed to TransUnion CIBIL Limited.

Any pension or one company takes a loan from any bank or NBFC, CIBIL keep and maintain data of those loans and repayment history. Here, CIBIL doesn’t record any data itself. CIBIL record those data which are provided by the bank and NBFC. This credit history is called CIBIL report.

What is CIBIL Score?

CIBIL Score is a three-digit number that is created on the basis of the customer’s loan repayment history. It ranges from 300 to 900. A higher CIBIL score is good and a lower CIBIL score is bad. Bank provides the loan to those who have more than 750 CIBIL scores easily. Customer faces little difficulty if their CIBIL score is less than 750.

Although those customers get a loan at a higher rate of interest. If the CIBIL score is less than 650 then it is very difficult to get a loan from the bank. Getting an unsecured loan is almost impossible in blow 650 CIBIL score. Secured Loan companies like NBFC can provide mortgage loans in blow 650 scores.

If a customer doesn’t have any previous loan history then his CIBIL score will be ‘O’ or “-1”. This is not a bad score. But personal loan companies take an extra cushion to provide loans to those customers.

Reason for low CIBIL score:

EMI Bounce: If you do not pay your EMI on time your CIBIL score will decrease.

Credit card Due: If you do not pay your credit card due your CIBIL score will be low.

Taking too much loan: Taking too much-unsecured loans and many other loans may reduce the CIBIL score.

Too many inquiries: If you apply for a loan many companies at a time and your loan application get rejected. Then your CIBIL score will go down.

Loan Settlement: Credit card settlement and any types of loan settlement make CIBIL score very poor.

CIBIL report error: This is actually not the customer’s fault. Bank or NBFC Company sends wrong information to the CIBIL. Sometimes Data mixing happens in CIBIL. It is a very common problem in customer’s credit reports. You can correct the report following the proper method. Click the below link to correct the CIBIL report.

How to improve CIBIL score quickly:

Pay your EMI and credit card dues on time:

Pay your EMI on time. Keep reminders for EMI and avoid ATM withdrawal frequently without checking account balance.

Pay your credit card dues timely. Never make any over dues. Try to use the minimum credit limit. Don’t use huge credit cards.

Avoid taking too much loan:

Don’t take too many loans. Avoid many unsecured loans. It decreases the CIBIL score even if you don’t have delayed payment.

Don’t take too many short term loan it is not good for your credit health.

Take Different types of loan:

Take different types of loans. Balance transfer to your credit dues to a personal loan. Try to take a secured loan more than an unsecured loan.

Loan settlement:

Avoid settlement credit card. Don’t settle any loan. Some time customer faces financial crunch and makes gradual delay payment. My personal suggestion doesn’t settle it if you can clear total dues a few time letter. Delay payment causes a low CIBIL score but settlement damage the CIBIL report.

Don’t Do many inquiries within a short period of time:

Don’t make inquiries gradually if your loan application rejected by two companies. Wait a few more times to improve your CIBIL score and other eligibility criteria. Its batter knows about the company’s loan eligibility criteria before applying for a loan to a bank or NBFC.

Get free CIBIL score