There is an ever-growing affinity towards personal loans. Many banks and financial institutions are offering quick personal loan to the borrowers. The lenders have a defined eligibility criterion which revolves around the income, credit history and credit score and repayment capacity of the borrower. And a poor credit score sometimes may result in getting your loan application being rejected. However, with some effort, one can improve the personal CIBIL score so that they can easily get the credits and loans from lenders in future. Here are some steps to do so:
1. Check your Credit Report
Your credit report as created by the CIBIL upholds all the information about your past credits and all the data used to calculate the credit score. The lenders provide these details to the CIBIL based upon which they create the credit report. As an alert borrower, one must check their credit report of any discrepancy or inaccuracy. If there are some listings which are incorrect or some data which is not updated, one can get in touch with the credit bureau and get it checked and corrected immediately. Being aware is very important when it comes to a parameter which judges your creditworthiness. A single correction can also significantly improve the credit score.
2. Check Your Credit Card Balance
Credit cards are easy to use, but going overboard with the credit limit hampers your credit score badly. It is advisable to minimize the credit card balance if you wish to increase your credit score. Taking a personal loan to consolidate multiple credit card balances is also a smart move to better your credit score. One should strive for only one or two credit cards as it greatly reduces the chances of disturbing the credit score.
3. Pay bills on time
Your repayment cycle defines your creditworthiness. Being regular in paying bills and making payments without any delays helps in improving the credit score. On the other hand, late payments continuously can have a bad effect on the credit score and may even take it down. Before taking a loan, it is advisable to calculate the EMI using the EMI calculator so that you don’t have any liabilities which you cannot pay comfortably over the loan tenure. Be diligent in paying your credit card bills and monthly instalments on time to enhance your credit score.
4. Keep old accounts open
Old accounts which you completed and paid off are a great way to show the future lender that you are a safe borrower and uphold the repayment capacity of the debt taken. Such well-paid and successful debt accounts enhance your credit score. Thus, it is advisable to not close one’s old accounts and keep them open and reflecting on the credit report. The longer they show in the report the better it is for credit score.
5. Fix your late payments
Late payments don’t go too well with the credit score. Such defaults reflect in your credit report as blots and lower down the credit score badly. Thus, managing your finances judiciously and paying for payments and bills on time can amp up your credit score quickly.
Apply for a personal loan in India from online platforms of Fintech platform LoansJagat and get hold of the best deals and offers in terms of rate of interest, loan amount, loan tenure and EMI payable. Also, show a responsible behavior towards your lenders by repaying the loan amount on time. This is not just good for the lender but also for the borrower as it enhances your credit score in the long run.