How to improve CIBIL Score? Know 5 smart ways to boost your score

Manage your joint accounts carefully

When you share a bank account with someone, their financial actions reflect on your creditworthiness and yours reflect on theirs. As a result, it is extremely vital that you have a joint with someone who is financially responsible and has a lower chance of negatively impacting your creditworthiness. If you have a joint account with someone who has a poor CIBIL Score, the best way you can protect and improve CIBIL Score is to close the account and make timely repayments. However, you need to keep in mind that along with this, you will need to take other measures and be patient.

Repay credit when it is due

Your repayment history is one of the most important ways to improve CIBIL Score. When you pay your EMIs or credit card bills on time and in full, without settling, it shows that you are disciplined and responsible and boosts your credit score. You can set reminders for payment deadlines or set standing instructions online to ensure that you do not miss a payment and have sufficient funds to make the full payment.

Be prudent in utilising credit

Your credit utilisation ratio is another aspect that you should look at to improve CIBIL Score. As a rule of thumb, you should try not use more than 30% of your total credit limit in a month.

If you find yourself going above this limit constantly, you should consider increasing your total credit limit. However, you should opt for this option only if you absolutely need it. Prior to this, you can try repaying any existing debt before availing new credit to keep your utilisation ratio in chec

Have a healthy mix of credit experience

Credit may be secured or unsecured. Secured loans require you to put your asset up as collateral. Unsecured credit is when you avail a loan without any security. A mix of these types of credit in your history shows that you have the experience and discipline to handle both and thus increases your credit score.

Check CIBIL Score and report to fix errors

Your efforts to improve CIBIL Score only bear fruit if you address the aspect that needs improvement. This is easy to do when you check CIBIL Score on a regular basis. This gives you better insights into what you need to do as such reducing your credit utilisation or paying EMIs on time.

Moreover, when you check CIBIL Score and the credit report that accompanies it, you can identify and resolve any errors that can tank your credit score. For instance, this could be a loan account that shows you have unpaid dues when you have repaid it in full. Doing this is important to make sure that there is no irreversible damage to your credit health.