A CIBIL score is one of the most significant aspects that almost every financial institution checks while receiving a loan or credit card application from an individual. It is a 3-digit numeric overview of someone’s credit history, rating, and report, ranging from 300 to 900.

It determines a consumer’s creditworthiness. The closer your score is to 900, the more suitable your credit score is. CIBIL is a part of the American multinational company TransUnion CIBIL and has affiliated with almost every bank to ensure the creditworthiness of millions of their customers.

How to increase CIBIL score in 2023?

It would be best to remember that it is a time-consuming process, not an overnight solution. Generally, it takes a few months to see a significant change in your credit report’s CIBIL score and improvements. Here I will share you with nine tips to increase your CIBIL score in 2023.

• Basically, This will help you understand the current position and where you slipped. It will also help you correct any errors or set a target (it has to be at least six months). For example, if a few delayed payments are responsible for your poor score, make sure it doesn’t happen again.

• Pay due on time: It is always imperative to pay your dues, such as credit card bills or EMI on time. If you timely miss out on paying your overdue, it will poorly impact your overall CIBIL score. Thanks to the incredible advancements in technology, the number of procrastinators is rising.

  Meanwhile, CIBIL doesn’t care about this excuse, and you must pay your dues and EMIs on time to see a significant improvement in your CIBIL score in 2023.

• Never holds unused credit cards:- It must not be a good idea to keep multiple credit cards idle. Operating too many credit cards in a single hand is very confusing. Hold only these credit cards you use most of the time to purchase fuel, grocery, or shopping purposes. If you do not like to use a specific credit card, close it as soon as possible.

• Always avoid a settlement:- A settlement is no less like a death certificate from a credit report perspective. If there is a settlement status in your CIBIL report, your report will be considered as dead because it has the power to damage your entire CIBIL report.

  In addition, sometimes, you may face some financial difficulty in continuing your EMIs or bills. Hence I advise you to never go for a settlement even if you are in your worst time.

• Stay away from too many loans:- Don’t represent yourself like a long hanger in front of your lender. When you apply for too many loans simultaneously, you will eventually seem like that. Your lenders are smart enough to determine your loan repayment capability. It is recommended to avoid too many unsecured or short-term loans simultaneously. So, stay away from doing this to improve your CIBIL score in 2023.

•  Diverse your credit folio:- A diversified credit folio will work as proof to the lenders that you are capable of handling different kinds of credit. For example, holding a combination of secured loans such as home loans, car loans, and unsecured loans such as personal loans and credit cards can accomplish that.

  You may also think of a gold loan or a secure credit card to boost your CIBIL score quickly in 2023.

• Choose a longer tenure:- It will be smart to choose a longer tenure of your due repayment while taking a loan. By doing that so your EMIs will become signified low. It will eventually give you some extra time to repay your overdue on time. So, you can keep yourself away from the defaulter’s list.

• Never be a joint applicant:- Sometimes, you may find a scenario where you have no fault. Suppose someone else has taken a loan, and you are the guarantor or joint applicant. If they have defaulted on payments, it will negatively hit your CIBIL score. So, it’s better to avoid being a joint applicant or a guarantor of others person’s loan to improve your CIBIL score in 2023.

• Avoid making frequent inquiries:- A higher number of loan or card inquiries can effortlessly rip down your CIBIL score. Suppose your credit card or loan application gets rejected, don’t think it ends here.

  CIBIL or other credit monitoring companies like Experian, Equifax, and CRIF Highmark record all the information in your report. It’s more profitable to avoid such activities and first try to improve your CIBIL score before applying.

Read more:

• How to remove ” Settled status” from the CIBIL report?
• How to raise dispute in CIBIL?
• How to improve CIBIL score?