134 Credit score is a measure of your credit worthiness as it reflects your credit history. Lending institutions use your credit score to measure your repaying capacity before approving your loans and credit cards. Majority of the lenders have started have started classifying customers based on their CIBIL score and risk based pricing on certain loans. Higher the risk higher will be the rate of interest and vice versa. How is your CIBIL Score Calculated Various factors are taken into consideration while calculating your CIBIL score like payment history, length of payment history, the debt amount, application for loan and credit cards, credit mix etc. Each of the factors mentioned aforesaid carries a different weightage. How to improve your Credit Score CIBIL score is a three digit number ranging between 300 to 900. Usually a score between 300 to 549 is considered poor and if your score is between 550 to 700 then it is considered average. Having a credit score above 700 is considered good by the lenders. Securing loans and getting credit cards become easy with a credit score above 700. In case you are having a low credit score then you can use the below mentioned tips to improve your score: Pay Your Credit Card Dues on Time: Always remember to pay your credit bills on time. Late payments result in a poor credit score. Hence, one method to improve your credit score is to pay your credit card card bills on time. Set reminders on mails and phones so that you never skip your billing dates.Limit Credit Utilisation: Keep credit card utilization below 30 percent of the total credit limit. Using more 30 percent of the credit limit has a negative impact on your credit score. Hence, always go for higher credit limit as it helps in improving your credit score fast.Avoid Multiple Loan Application: Applying for loans with multiple banks have a negative effect on your credit score. So, always apply for a loan with only selected one or two banks. It will improve your credit score as well as your chances of getting a loan approved also.Keep a Check on your Credit Report: Always check your credit report report as it helps in identifying inconsistencies and errors if any in your report. Errors have a adverse effect on your credit score. In case you come across any errors in your report then you can report the same to credit bureau and get it rectified.Opt for Different Types of Credit Report: It is advisable to have a different type of credit in your portfolio which is a mix of both secured and personal loans, short as well as long term loans. Having different types of credit helps in improving your credit score. It also improves your chances of getting a higher amount loan at a cheaper rate of interest.Increase your Credit Limit: Increasing your credit limit will automatically bring down your credit utilization ratio and hence, it will give a boost to your credit score. Lenders will label you as a high-risk borrower if you over utilize your credit limit. So it is always advised to increase your credit limit before any additional spending as it helps in keeping credit utilization ration low. Having a good credit score is of prime importance in availing any loan or best credit cards in India . Using the above mentioned methods you can easily boost your credit score. In case you wish to check your credit score then you can check it for free on any web aggregator’s website or by directly visiting any of the credit bureau’s website. check cibil scorecredit scorefree cibil score 0 comment 0 FacebookTwitterPinterestEmail admin MarketGuest is an online webpage that provides business news, tech, telecom, digital marketing, auto news, and website reviews around World. previous post Negative Keywords in SEO: A Complete Guide next post How Human Brain Stores Memory Related Posts Questions to Ask Before Buying a Truck for... December 12, 2024 The History of Rug Making: A Journey Through... December 11, 2024 Understanding Workplace Discrimination Laws December 11, 2024 Why Is It Important To Write A Will... December 10, 2024 The Role of the Best Accountants in Scaling... December 10, 2024 Experience Urban Elegance at Bloomsbury Residences Condo December 10, 2024 Managing Stress and Burnout While Writing a Dissertation December 10, 2024 Physiology Assignment Help: Your Comprehensive Guide to Success December 10, 2024 Benefits of Creating an Ivory Researcher Profile on... December 10, 2024 Benefits of Creating an Ivory Researcher Profile on... December 10, 2024 Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.