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7 Tips to Make your CIBIL Score Better

There are many types of loans that are lent by banks and other financial institutions. Out of them, all housing loans are the hardest to get because they involve a lot of money and the lenders scrutinize with a lot of factors before processing a loan. From the many factors involved in the process of loan application, the most important yet underrated one is the CIBIL score of the applicant. Even well-settled and well-earning applicants are straightforwardly rejected just because of a poor CIBIL score.
Basically, a CIBIL score is a triple-digit value of the credit history of a person. This numeric summary is calculated using the history of credits across various other loans and credit based payments that the person has under his/her name. In this article, let us see how to improve that CIBIL scores for aiding a successful loan sanctioning process:

Proper settlement of all the loans:

The Credit Information Bureau India Limited or the CIBIL wants a former loan borrower to report the non-repayment of the loan by the rules. All the other loans like personal loans, vehicle loans, etc. should be repaid for and the same should be reported legally. It is good to get a NOC that you have settled your loans. With a No Objection Certificate, you can enhance the eligibility criteria along with reliable collateral to back you up.

Take care of your credit card bills:

Every credit based bill should be paid back on time. For some credit cards, you can keep a debt and just pay a minimal amount for the time being. This adds up to debt and doing this can easily impact the credit score. If you already have an outstanding debt, then look on cutting down the debt to zero and then stop using credit cards unnecessarily. Also do not get more credit cards just to flaunt and show off. If you have credit cards already, make timely payment for a good credit score. Mr. Kobeer, who had a good credit score while applying for a loan to purchase one of the apartments for sale in Pallavaram says that it is important to take care of credit card payments to maintain a good score.

Keep track of your CIBIL score:

Financial institutions and banks give the credit history and information to the bureau every month, but it gets 3 to 6 months to be updated by the relevant agency. There might be an inquiry for a credit default on the report which was from the past. While applying for the loan, the credit score should be updated. So, keeping track of the score regularly and accessing the score is important.

Shutting down unsecured loans:

A decent credit score is related to a proper credit mixture under the applicant’s name. You can have a number of secured loans along with an unsecured one. Delays in payment of the credit dues can impact the CIBIL score quite easily. In the presence of many unsecured loans also the chances of getting a secure loan decreases. Also look to cancel some credit cards if you have many.

Seek solutions and other options:

You might default a payment of credit bills due to a genuine concern. In these situations, you can go ahead and ask a financial expert from the bank for possible solutions. Always maintain a track of the repayments right after the reporting of a delay in payment.

Show that you have a stable income:

Get an authorized statement from your employer that you bring in a stable income. The letter should have the holding job profile, salary statement, employment tenure, and bonuses to get the loans sanctioned. Banks consider applicants who have been in the same company for a lot of time. Try to show your strengths like these to avail the loan easily.

Do not keep bad company:


Do not become a guarantor for someone else’s loan who might not repay it in the future. Do it only for the people you trust and are reliable to repay their loans back. Being a guarantor to a defaulter can also badly impact your CIBIL score. 
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