Introduction
Your CIBIL score is crucial for getting loans and credit cards. A high score increases your chances of approval and better interest rates.
What is a CIBIL Score?
- A 3-digit number (300-900) that reflects your creditworthiness.
- A score above 750 is considered good for loan approvals.
Tips to Improve Your CIBIL Score
1. Pay Your EMIs and Credit Card Bills on Time
- Late payments negatively impact your score.
2. Maintain a Low Credit Utilization Ratio
- Try to use less than 30% of your total credit limit.
3. Avoid Multiple Loan Applications
- Too many applications lower your score.
4. Check Your Credit Report for Errors
- Regularly monitor your credit report and dispute any mistakes.
5. Diversify Your Credit Profile
- Having a mix of credit cards, home loans, and personal loans helps.
Conclusion
Improving your CIBIL score takes time but is essential for financial stability and loan approvals. Follow these tips to maintain a healthy score.
