Friends, often due to our poor credit score, we are not able to apply for a credit card or loan when needed. And this often happens at a time when we are in great need of money.
If you too are not able to take a loan or credit card due to your bad credit score, then here I am telling you some useful tips which can help you in rebuilding your credit score.
Not only this, through these you can also improve your credit score quickly.
Now, if you want to get a job in a bank, then it is very important to have a good CIBIL score along with education. CIBIL score or credit score tells you how you have handled your debts/loans. A credit score above 750 is considered very good. Institute of Banking Personnel Selection (IBPS), the recruitment company that conducts examinations for banking services, has announced this new criteria.
If your credit score is not good then you have no chance of getting a job in a bank. You can improve a bad credit score. You have many different ways to improve your credit score. We have mentioned some of these methods in this article. With a better credit score, you will not only be eligible for a banking job but you will also get a loan easily. Let us know how you can fix your credit score.
Why does credit score get bad?
Often, due to some small mistake of ours or deliberately not paying the bank loan or credit card taken on time, our credit score gets spoiled.
Our financial transactions are monitored by government institutions. And that is why everyone is given a certain score on the basis of their government documents like PAN card which is usually between 300 to 900.
In this, minimum score of 300 and maximum score of 900 is given. Whenever we apply for a credit card or loan from any bank, the bank checks our score and gives us the card or loan only if it is correct.
CIBIL has complete information about your credit score in India, and you can also see this report on the basis of your PAN card.
How To Improve Credit Score Quickly?
If you also want to improve your bad credit score quickly, then let me tell you some methods which can prove to be very effective for you.
Pay All Your Old Bills.
If you have not yet paid any of your old transactions, you may face a lot of trouble in improving your credit score. Because the bank will not give you NOC due to old outstanding amount, due to which your name will appear as a defaulter in your credit report. Therefore, if you pay your dues and take NOC from the bank, then this report will not have much impact on your credit score and you can rebuild your score. If for some reason you are not able to pay the full amount, then even after talking to the bank and paying a fixed amount, your account will be closed and the bank will give you NOC for the future. But here your credit score will reduce a bit which you can improve later.
Pay Before Due Date
If you have purchased any product through credit card, then definitely remember the last date of its payment i.e. due date. If you do not repay the loan/loan till the due date, not only will you be charged a penalty but your credit score also gets spoiled. Therefore, always pay the bill by the due date i.e. the due date of payment.
Increase Card Limit Accordingly
Seeing your good credit score, the company calls you repeatedly to increase the limit of your credit card. In such a situation, many times we increase our credit score and then increase our expenses accordingly. Never do this. Keep the credit card limit as much as necessary. Spend only as much as you can afford.
Don’t Settle, Cancel the Loan
Loan settlement means that you did not repay the loan on time and in the end you settled your loan on one payment by making some kind of agreement with the bank. This is visible in your credit card history and this spoils your CIBIL score. Therefore, eliminate the credit card and not dispose of it.
Use Credit Card
You can also correct your bad credit score by taking credit. You will have to spend money through credit card and then repay it on time. In this way your credit score will gradually improve.
Keep checking your credit history frequently throughout the year
How to improve CIBIL score? Monitor and report your CIBIL score regularly to check any discrepancies. Sometimes, CIBIL may make mistakes when it comes to updating your records, including incorrect information in your report and delay in entering the details. Sometimes the loan you have repaid is not updated in the credit report, which can have a negative impact on you. If you notice such errors, get them corrected immediately.
Take Loan for Long Term
One can opt for a longer tenure when you take a loan, to ensure that your EMIs are lower. You can also increase your credit limit. How to improve CIBIL score through this? This doesn’t mean you’re going to spend more money. The trick is to have plenty of credit and keep your utilization low to leave a positive impact on your score.
Conclusion
Here I have shared all those tips which can help you in increasing your credit score effectively. But if we gather some information before damaging the credit score, then this problem can be prevented before it occurs.
