If you are a smart credit user then you probably have a decent credit score already. However, do you know how high it has to be to be considered good by a lending institution? A score higher than 750 is considered good by lending institutions, but the maximum you can get is 900, which is the limit. So, this begs the question- can you get a perfect 900 score, or at least higher than 850? The answer is “yes”. If you are willing to go to great lengths for scoring higher than 850 then you can certainly succeed in the endeavour.
Here are some of the things you must do to get a super high CIBIL score:
- Lowering Your Credit Utilization
High credit utilization has a direct affect on your score. Even if you have been paying your credit card bills on time, and making regular EMI payments, excess of credit usage can be detrimental for your CIBIL rating.
To get a perfect or near-perfect score you must cap your credit utilization at 30%-40%. If your credit requirement is high then you can also ask your lender to increase your overall credit limit so you can spend the same amount of money every month, but enjoy the benefit of lower credit utilization ratio.
- Automating the Repayments
If you want to improve CIBIL score and create an impressive credit report then paying your EMIs and credit card bills on time is a must. There is no workaround for it.
Since even a single late payment can hurt your credit score, it is best to not take any chances. So, one thing you can do is make an arrangement with your bank and have them set automated repayments. With this your EMIs and credit card payments will be deducted from your account automatically every month.
- Length of the Credit History
The longer is your credit history, the higher will your score. This is because a person will shorter credit history has a risky profile, and can’t be trusted by a bank easily. So, if you have several credit cards under your name and you have to cancel one out of them all, then choose the one that was issued most recently. If you will cancel an old credit card it could affect your score negatively.
- Being Careful When Applying for a New Loan
If you are planning to get a new home loan, personal loan, etc. then make sure that there is a gap of at least six months since your last loan application. When you apply for loans or credit cards frequently then lenders can consider this as a credit hungry behaviour and report it to CIBIL. This can hurt you score to a great extent.
- Checking Your Report Frequently
Are you trying your best to improve your credit score but are not observing any improvement? Maybe the problem is not with your efforts, but with your report itself. Many times credit users get a bad CIBIL rating because of errors or mistakes in their credit reports.
You can get a free credit report online to get an idea of where you stand. If you are not satisfied with the rating, you can apply for the actual CIBIL report by creating an account on the official website. If you find any discrepancies or mistakes in the report, you can intimate your bank about the same. They will inform CIBIL, which will make the changes accordingly. You should be able to see the improved rating within 30 to 45 days.
When it comes to credit score, you shouldn’t ever get comfortable. Financial institutions are becoming more and more stringent with their application procedures. More than that, a high credit score is also slowly becoming a part of the eligibility criteria for getting a job. Thus, you should always strive to improve your score no matter where you stand. Even if your score is higher than 750 (which is considered satisfactory), you can always improve it. With an excellent score you can get a loan or a credit card easily in the future. Plus, you can also enjoy low interest rates as well.