Also known as credit score, the CIBIL score plays a vital role in the approval of a particular loan that you are planning to take from the bank or online organization that provides the loan. The generation of the CIBIL score depends on various factors, which includes credit history and payment pattern. The higher is your CIBIL score; the more chances are there to get your loan sanctioned. On the other hand, if you have a low CIBIL score, there are higher chances that your loan will get rejected. Read more to know different ways to increase and improve the CIBIL score.

1.  Monitor your Credit Report

One of the best and prime ways to improve the CIBIL score is checking your credit report regularly. On checking your credit report, you will get to know about the delayed or default payment if there is any. Secondly, you will have a look at all the information that is recorded in your credit report. This will help you to fix all the problems that have brought down your CIBIL score. If there is any delayed amount, you can pay it, and if there is any false information, you can get in touch with the concerned bank.

2.  Once your Credit is Rejected, don’t Apply for it Immediately

If your application for a loan or credit card has been rejected, do not reapply for the same again in the different banks immediately. If the loan application is rejected in one bank, your CIBIL score will be shown in negative in other banks as well. Thus, you will not get the loan from the other bank as well.  All you can do is wait for some time until your CIBIL score does not improve.

3. Pay Your Monthly EMI on Time

If you do not want your CIBIL score to go in minus, then pay your monthly EMI amount on time. If you cannot pay the entire amount, try to pay the minimum amount. You can even contact the concerned bank to restructure your EMI amount so that you can easily pay it monthly. In case, you are looking for a platform from where you can get a loan without any hassle, than BankBazaar is your go-to destination. Plus, you can make use of BankBazaar coupons to get a significant discount on its services.

4.  Pay your Credit Card Bills on Time

If you use a credit card, then make sure you pay the amount on the time. Plus, ensure that you do not touch the limit of your credit card amount; otherwise, your CIBIL score will go in negative. If there is an emergency or financial crunch, you can pay the minimum amount; however, do not repeat the same, this too, can lead to the negative CIBIL score. Make your payment on or before the due date; if you proceed with the due date, you might have to pay the extra charge. This can also affect your CIBIL score.

5.  Don’t Settle Credit Cards and Loans

Often people visit the respective bank to settle their loan amount and credit card bill at the lowest amount, some banks do entertain such request, but it will not be beneficial in your favor. On the contrary, your CIBIL score will reach in minus, which will hamper your request for a loan in near future. As advised, pay the due bills and amount on time.

6.  Borrowing Amount Should be Minimum

In case you have taken too many loans, and you are unable to pay the monthly loan amount regularly or pay the minimum amount only. There are higher chances of your CIBIL score falling in the negative. Thus, if possible, do not take too many loans at least till the time you do not clear your debt.

7.   Avail All Types of Credits

There are two types of loans. One is a structured loan, and another is an unstructured loan. If you take the unstructured loan frequently, then there would be higher chances of your loan rejection from the bank. To avoid such a problem, you should take a mix of loans like personal and home loans.

8.  Keep a Tab on Joint application

If you are a joint applicant for the loan that your relative or a friend has taken and if the person does not pay the amount on time, you might get into the problem. Since you are a joint applicant, these will hamper your CIBIL score. If you do not want to be in loss, then make sure the person pay the money on time.

Conclusion:

A negative CIBIL score might not let you take the loan; however, if you wait for some time and follow the above-listed practices, soon, your CIBIL score will improve, and your loan will be approved.