At the approval of any loan, your CIBIL score i.e. credit score has special significance. One of the most important elements in determining the terms of your loan agreement. Your credit score becomes your most important financial property. If you want to take a loan for a bike or scooter and you are weak CIBIL score, then you may have a lot of trouble in getting a loan. To buy a two -wheeler in India, you have to maintain a credit score of 750 or more. In such a situation, you should focus on improving your CIBIL. For this, you have to take special initiative, let us discuss this issue here.
Get your credit report and improve the error
The first step to improve your credit score, get your credit report from reliable sources such as Transunion Cibil, Experience or Equifax. Carefully review it and check for any inaccuracy in it. Such as personal details, account details, payment history, employment related information, duplicate account or wrong dues can be related. If you get any impaired, file a complaint in the CIBIL to improve the error.
Make bill payment on time
An easy way to increase your credit score is to pay your bills on time. Pending or late payment of your utility or credit card bills usually affects your credit score negatively. You can also choose automated bill payment options or set a calendar reminder to ensure that your bills are never payable.
If there is a debt, pay it immediately
If there is a debt on you before you, then pay it quickly. To improve your credit score for a bike loan, make sure your debts are always low and you have a history of continuous payment. Banks closely analyze your repayment history while considering your loan application.
Low credit use ratio target
Credit Use Ratio (CUR) is the amount to be used from the credit range. A high Cur indicates that most of your expenses are spent from your credit, and it reflects poor financial management. You should maintain curry of less than 30%, as high curry can reduce your credit score. According to Tata Capital, if you are facing a regular credit limit violation, you can consider contacting your credit card company to increase the limit.
Mix your credit
A diverse credit portfolio can increase your credit score. This includes a balanced mixture of safe and unprotected loans with long and short periods. A safe loan is one that is supported by a property as collateral, while an unsafe loan is not bound by any of your property. A diverse credit mix may include some credit cards, personal loans, home loans or vehicle loans.
Limit new credit application
Every time you apply for a new credit, you face a hard inquiry or hard bridge. Hard inquiry is requested to look at your credit report to evaluate your credit history when considering your loan application by a bank. In a short time too much hard bridges usually affect your credit score negatively because it may indicate that you are very much dependent on the new credit to manage your money.
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