Posted on: August 17, 2016

Tips To Improve Your Credit Score

Credit Score

Credit score is a three-digit score of your creditworthiness, on the basis of which lenders evaluate your loan, cred­it card application and their interest rates. Credit bureaus rate you on a scale of 300-900 as per your financial track record; any score below750 usually decreases your chances of getting a loan or leads to higher interest rates.

 

Here are some tips to help you in­crease your credit score:

 

Repay dues regularly

Your payment record contributes about 30-35 per cent to your total score, so timely repayments of debts improve your credit score.

 

Pay off old debts

Con­sider paying off any un­secured loans with high interest rates, like credit card dues and personal loans. If required, break your fixed deposits or other low-yield invest­ments to pay off your dues, given that these earn lower interest rates.

 

Limit credit card utili­sation

Avoid exceeding 40 per cent of your cred­it card limit, as credit bureaus interpret it as credit-hungriness on your part. If your credit card spending regularly exceeds this limit, get your credit limit in­creased, or get another credit card to meet your increased expenses.

 

Avoid unnecessary loan enquiries

Fresh loan application gener­ates credit enquiry, which gets recorded in your credit report. Too many credit enquires on your part within a short time frame brings down your credit score. Avoid unnecessary loan en­quiries if your credit score is already low.

 

Monitor co-signed, joint and guaranteed loan accounts

Always check statements of your co-signed, guaran­teed or jointly held loan accounts, as you are equally liable for any de­fault or missed pay­ments in those ac­counts. Such instances adversely affect your credit score.

 

Review your credit report

It is important for you to check your credit report for any clerical errors. Also, make sure your credit report doesn't reflect any closed loan or paid-off dues as currently ac­tive, as it may lower your credit score to a large extent.

 

By Naveen Kukreja, Managing Director, PaisaBazaar.com

(Published in Financial Chronicle on May 11, 2016)

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32 Comments

    • Mr. Kaleemulla,

      Thanks for reaching out to paisabazaar.com to know your CIBIL score. At paisabazaar, we provide free credit reports from our partners — Experian and Highmark. To get your free report, click here.

      Regards,

      Team Paisabazaar

    • Hi Rajinder,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can download it after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

       

    • Hi Lalit,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and download the report after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

    • Hi Nagaraj

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and download the report after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

    • Hi Suresh,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and download the report after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

    • Hi Jugalkishore,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and download the report after verifying your details with us by clicking here. To get the best offers on loan, it is important that you score above 800.

       

      Regards,

      Team Paisabazaar

    • Hi Usha,

      Thanks for logging on to paisabazaar.com – one-stop destination for cards, loans and investments. To apply for personal loan, click here.

       

      Regards,

      Team Paisabazaar 

    • Hi Shaizadaali,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and download the report after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

    • Hi Sidappa,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and receive the report directly in your inbox after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

    • Hi Nizam,

      Thanks for contacting us at paisabazaar.com for your free credit report. You can know your credit score and receive the report directly in your inbox after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

    • Hi Rajamanickam,

      Thanks for contacting us at paisabazaar.com — an online marketplace for loans, cards and investments — for your free credit report. You can know your credit score and receive the report directly in your inbox after verifying your details with us by clicking here.

       

      Regards,

      Team Paisabazaar

  • Sir I pay my loan time to time I used 2 loan hdfc bank .hdb bank
    I used 2 card hdfc .sbi
    I pay all payment time to time
    How my credit score is low
    Pls help me

    • Hi Rohit,

      Thanks for reaching out to Paisabazaar.com — online marketplace for cards, loans and investments. Please share your details with us at care@paisbazaar.com so that we can share the reasons for low score as well as ways to improve your credit score.

       

      Regards,

      Team Paisabazaar

    • Hi Shahrukh,

      Thanks for reaching out to paisabazaar.com – one-stop destination for cards, loans and investments. CIBIL score is impacted by several factors: such as payment history, age and type of credit, credit utilization and more. To be able to point out the specific factors in play in your report, and to guide you on how to improve your score, please write in to us at care@paisabazaar.com and share your report details. 

      You can also read our article: Establishing a Strong Credit Score: 9 Tips and Tricks
       

      Regards,

      Team Paisabazaar

  • Thank you for providing important information regarding cibil. Will any communication with this site regarding credit score reflect in my cibil report?

    • Hi Anil,

      Thank you for reaching out to paisabazaar.com. Any communication/discussion you have with us with respect to your score will not be reflected in your report.

      You can get your free credit report by clicking here. We can provide you customized offers based on your score, guide you on how to improve your credit score and support you in resoving errors in the report, if any.

       

      Regards,

      Team Paisabazaar 

    • Hi Shishir,

      Thanks for reaching out to paisabazaar.com – online marketplace for credit cards, loans and investments. Please share your details with us at care@paisabazaar.com so that we can reach out to you and help you find a solution.

       

      Regards,

      Team Paisabazaar

       

  • Hi Team,

    I know that I have a bad credit score and I do not get eligible for another loan. I’m trying to pay off my debts as soon as possible. However, can I know how soon does the credit score get back to good or one can become eligible again for loans?

    Thanks.

    • Hi Shailesh,

      Thanks for reaching out to Paisabazaar.com — online marketplace for cards, loans, investments, and free credit reports.

      Rebuilding your credit score takes time and missed repayments, loan defaults, etc. show up on your credit report for at least a 5 year period. However, a couple of years down the line, the adverse impact caused by the missed payment begins to lessen provided you have made timely repayments of existing debt in the interim. So keep making your scheduled payments and check your credit report atleast once a year to ensure that you are on the right track. It is best to avoid taking on additional loans or applying for new credit card till you reach a healthy score as that can hurt your credit score further.

       

      Regards,

      Team Paisabazaar