A good CIBIL score will help you to get an instant personal loan at a very reasonable rate of interest I will mention here 5 ways to boost your CIBIL score
1. Set Reminders or Standing Instructions to Repay Loan EMIs on Time
Your credit score is impacted negatively if you miss out on making your loan EMI payments by the due date.
2. Clear all Credit Cards Dues on Time
Your CIBIL score is hit significantly in case of non-payment of dues and regular defaults can easily take your credit score below 600. If you miss the due date, it is reflected in your credit report under the Days Past Due (DPD) section in your CIBIL report.
3. Check for Errors in your CIBIL Report
You might have a good credit history, but there can be various unknown errors due to which your credit score can be hit.
4. Avoid Multiple Credit Applications in Short Duration
multiple hard enquiries in a short span of time show your hunger for credit. Lenders might consider such applicants to be in financial difficulties and thus have relatively higher risks of credit default. This may eventually lead to credit application rejection by the lender/card provider.
5. Monitor your Co-signed, Guaranteed or Joint Loan Accounts Regularly
In case of non-payment of EMIs on time, the credit score of the co-signor/guarantor also takes a hit along with that of the borrower. So if you are a co-signer or guarantor, you should regularly monitor if the repayment of the loan EMIs is done on time and discuss it with the borrower if there is a default in the repayment.
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