Recently, you may have applied for a loan or a credit card and seen your application getting rejected again and again. You must be given the reason frequently that you are denied a loan or a credit because of you low cibil score. In such situations what would you do? You do the obvious! You get your free cibil score, Start researching on how you will get your credit score up in no time and get your credits approved. It seems simple, right? No, it is not that easy, once you end up in the loan defaulter list, it is really a struggle to get your cibil score up any time soon.
You explained this situation to someone in your office and asked for their suggestion. Your colleague had no clear answer for you which you can bank on and start amending your credit score from negative to positive. Your research continues and you run out ways to get your score up in quick time and now you are in a situation where you need a loan, but you are getting it denied due to the reason being, you low cibil score.
There is no shortcut for you when it comes to appreciating the credit score. It is a slow and gradual process. Once you default a payment, you see a sudden dip on the score, but on the other hand, you will have to make regular payments before you see your score to be stable and growing. Do not mistake that the defaults will vanish from your credit report. Every financial transaction you make is recorded on the report and it stays on the report for a very long time.
There are some tips and tricks which can help you get started,
Make all payments on time
This is the first and foremost thing which you need to do when it comes to amending your score. You will have to make all your payments on time so that you do not default your loan as well as see a dip on your score. If you make all your payments on time, the score remains steady and constant.
Stop making credit inquiries
When you know that you lie in the lower side of the credit, stop applying for loans and credit cards again and again. This will hamper your score even more. A credit inquiry is one of the components which decide on your cibil score. The more inquiries you make, the more your chances are to get a dip the score.
Keep an eye on your credit report
There are high chances that your credit report may contain a mistake made by the credit bureaus. This is a frequent drill where the bureaus make mistakes on the report. What you need to do is check your report frequently and report any mistakes to the credit bureaus if found. The dispute will take up a lot of time, but will help you get a healthy resolution and get your score up in no time.
Don’t exceed your credit limit
Your credit limit is an important thing and you do not realize that until you have completely exhausted it. Minimum usage of credit limits shows that you are responsible spender and do not spend on unwanted luxury. Less usage of limits mean, less to pay back and less pay back will lead to a healthy credit score.
Building up your credit is indeed a slow and gradual process, but what is important is that you need to be careful with your payment patterns to avoid such mishaps.