In the previous topic, our focus was on the personal loan requirements and ways to get a personal loan while having bad/low CIBIL scores. We are here to guide you about every aspect of CIBIL. Now we will discuss the credit solution. Yes, we are here to provide you with useful tips in order to boost up your CIBIL rating.
Before proceeding further, you must know what is meant by Credit score and how it is related to personal loan? Well, credit scores play a significant role in getting your loan approved. It is the score which represents your credit worth and reveals your credit history. Through this, lenders, banks, organizations, and companies know your credit records. It helps them to decide whether to approve your loan or deny it on the basis of past credit information or history.
Now the credit scores mainly range between 300 and 900. But which score is regarded as the good one and which one is the bad score. The above-mentioned table will explain this to you. Let's have a watch out at this credit score list.
Scores in Between 300 and 580 - Leads to denial of your loan. And if a loan is granted then very high-interest rates will be charged on it.
Scores in Between 581 and 650 - Possibility of loan approval is there but still the interest rates will be higher.
Scores in Between 651 and 710 - Loan will be approved while the interest rates will be moderate.
Scores in Between 711 and 750 - Loan will be approved while the interest rates will be competitive.
Scores in Between 751 and 900 - Loan will be granted for sure and lowest interest rates will be implemented.
So from the above-mentioned table, it is clear that if you are having good credit scores that mean you have good credit record and loan will be easily approved plus fewer interest rates will be charged. But lesser the credit scores, the more chances will be of loan denial and higher will be the interest rates.
First it's important that you go through your entire CIBIL history i.e. credit report, your CIBIL or credit score and check if your name is in the CIBIL defaulter list or not. If it appears on the list then it's essential to improve it for maintaining a good report and achieving a good score as well.
The legal way to check it is to visit a bank and ask them for the control number from the bank. Afterward, you are requested to submit a draft of RS 142 in favor of CIBIL along with that control number. You can make payment of that draft online as well. Visit http://www.cibil.com for more details and information on credit card report or CIBIL report.
Useful tips on How to Increase your CIBIL rating:
Now as you are clear with the concept of CIBIL scores and ratings, so let's move on to the solution to how to increase CIBIL points and how to increase CIBIL ratings. Well, here we have collected some useful tips which will be beneficial in approval of a loan for CIBIL defaulter.
The above-mentioned tips will help you to increase your CIBIL ratings in a short span of time. Let's go through these tips. Note that there is no such trick which will boost up your score suddenly from lower to extremely good ones. However, you can improve them slowly and gradually. You need to follow certain guidelines and this will take at least one or two months.
It is important that you get a generated credit report at least once a year. This is because if there is any kind of error in the report then you may get it correct. The errors may include wrong credit limits, late payments, or the items mentioned that don't belong to you.
It is necessary that you pay all your bills on time to have a good record. Because such things may appear as the negative points on your credit report and may lead to a decrease in your scores. It is good if you set up reminders for the payment of your bills.
It is good that you repay the balances mentioned on your credit report as soon as possible. It is useful in boosting up your credit scores.
Avoid cancelation of credit cards which are not in use. As canceling can lead to a certain decrease in your credit score. If you have got a good long credit card history then this will help to improve your credit scores.
Another tip is not to exceed your balance above 30% of your credit card limit.
If you have applied for a loan then it is better that you get it approved soon because the lenders go for certain credit inquiries which may cause a decrease in your credit scores.
If you do not possess any credit card history or are having any low/bad credit scores, then it is good to opt for a secured credit card. You have to make payment of hundred dollars at least as the security deposit.
It is good to opt for a gas store card for the purpose of buying snacks, beer and such products on credit. It is good for establishing a good credit report that you make small monthly expenses and you repay them back on time. This will surely improve your credit card score.
This is the one of the most essential and useful guides about the credit card. Hope this guide helps you in achieving a good credit score and makes the way easier for you to achieve personal loan at a lower interest rate. Achieving loan at lower interest rate helps you to fulfill your requirements with the loan amount and repay it back easily and on time. For more information and guidance regarding credit cards, personal loans and CIBIL reports, stay tuned with us. We will always be available for your assistance.