Well if you thought that scoring well in exams was the most important thing, you may be in for a rude shock. Also when your parents told you to keep your scores high and life will be good, they were right-at least for the CIBIL score.

Having a good Credit Score can take you places in life. To be able to get big-ticket loans, you must start building on your CIBIL score as soon as possible. The moment you take a loan and start paying it back it starts impacting your CIBIL score

Wondering what is a good credit score?

Sadly, there is no magic number or range that qualifies as a good CIBIL score in every case. However, anything over 700 is considered good.  Based on your credit history your CIBIL score can range anywhere from 300 to 900. 

To help you understand easy and doable ways to improve your credit score we have listed the top 5 ways to do so. Read on!

It is the size that matters

Take. Small. Loan.

You heard us! Take a loan only when you are in absolute need and try to take as small a loan as possible. The smaller your loan the better you will be at repaying it without any hassle or discomfort. Small loans are also a good idea to get you in the habit of paying your EMIs in time for when you have to take a bigger loan.

Credit cards are like relationships- stick to one

They say you need to find one, and stay with them and they are right!

Get yourself a Credit Card that offers you great perks, cashback and a lower rate of interest. The longer you continue using a particular credit card, the more extensive your credit history becomes, and the better your credit or CIBIL score gets.

A lot of credit cards today offer a free 1-to-3 month repayment cycle. If you have a credit card like this or can get one, you may want to consider using it for all your expenses. You can pay back for these expenses from your income at the end of the month. As long as you spend only what you can afford to pay back, you’ll be good.

Two-timing or multi-timing will bite you back

Take one loan-pay it back-repeat.

Okay, so here is the deal, to prevent your CIBIL score from crashing, pay back one loan before you take another one. Think of this as food. We know you want it all but you can only eat some. So get only as much as you can eat. The same goes for loans- take only as much as you can pay back and do not take more than one Loan at any given point in time. If you take multiple loans at one time you will come across as somebody who is stuck in an unforgiving chain of borrowing. This is definitely not a good look for your CIBIL score.

Anniversary and  Month-esary you just can’t forget

Any anniversary or month-esary that you forget is going to take you down.

Ain’t nothing taking you down like forgetting to pay back your credit card bill. So get your reminders in place and you may want multiple of those to ensure you pay your credit card bills in time. Paying your credit card bills in time is going to help you increase your credit or CIBIL score significantly. Delayed payments will not only result in a bad CIBIL score but also attract a penalty and a higher rate of interest.

Review will take you far in life

This will also help you build yourself the life you want.

We cannot tell you about ways to improve your credit or if you don’t regularly monitor your CIBIL score to see what is wrong and what is right. It is only then that you can figure out how can you improve on the score that you have now. It is almost unavoidable to monitor your CIBIL score and to understand the impact that your borrowing and repayment made and will make.

Remember when you were in school and used to get your exam sheets only for you to realise that your teacher has made a  marking mistake. That can happen with your CIBIL score too. If you monitor your CIBIL score regularly, you can report inconsistencies, if any and get them rectified to improve your CIBIL score

These were just a few of the many ways to improve your CIBIL score. The sooner you start focusing on improving it, the better it is going to be for you.

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