Credit Score Tips: 5 secrets to increase CIBIL score like a rocket! Your score will go from 750 to 800+ directly; There will be no problem in getting loan and credit card

Getting a home loan, car loan or low interest personal loan from any bank or financial institution completely depends on your credit score (CIBIL Score). If your CIBIL score is below 750 on a scale of 300 to 900 points, banks consider you a ‘high-risk’ customer and either reject the loan application or charge exorbitant interest rates. Whereas, a score of more than 800 puts you in the ‘Prime Borrower’ category, where banks themselves offer loans with the lowest interest rates and pre-approved offers.

Credit score doesn’t change overnight, but with financial discipline and the right strategies, it can get a sharp boost within 3 to 6 months. These 5 tried and tested methods, designed as per credit bureau and banking standards, can help your credit score reach 800+ quickly.

Incorporate the 5 strategies below into your regular financial life to improve your credit score quickly:

• Secret 1: Keep Credit Utilization Ratio (CUR) below 30%: What percentage of your credit card’s total limit you spend is called credit utilization. If your card limit is ₹1,00,000, do not spend more than ₹30,000 in any billing cycle. Using the entire limit shows that you are overly dependent on credit, which causes the score to drop rapidly. If the expenses are high, get the limit increased from the bank so that the ratio automatically remains low.

• Secret 2: Avoid the maze of ‘Minimum Due’, make 100% full payment: Paying only ‘Minimum Amount Due’ saves late fees, but annual interest of more than 40% keeps getting added on the balance amount and sends a negative signal to the credit bureaus. Always pay the ‘Total Amount Due’ as soon as the bill is generated. To avoid forgetting, keep ‘Auto-Debit’ activated from your bank account.

• Secret 3: Never close old credit cards: Your ‘Length of Credit History’ plays a major role in CIBIL calculation. When you close your first or oldest credit card, your old credit track record is removed from the system and the total available credit limit decreases. Keep your old card active by making small bill payments on it.

• Secret 4: Do not apply for loan or card at multiple places simultaneously: Whenever you apply for a new loan or credit card, the bank does a ‘Hard Inquiry’ of your CIBIL report. Within a month or two, applying to multiple banks simultaneously makes your profile appear ‘credit hungry’, which can cause your score to drop by 5 to 10 points on each enquiry.

• Secret 5: The right balance of secured and unsecured debt (Credit Mix): Instead of carrying a heavy load of only personal loan or credit card (Unsecured Loans), maintain a healthy balance of Gold Loan, Home Loan or Auto Loan (Secured Loans) in your profile. A diverse credit history proves that you are capable of managing different types of debt.

Many times, despite no fault of yours, a closed loan appears active due to technical lapse of a bank or the default of someone else gets added to your PAN.

• Visit the official website of CIBIL, Experian or CRIF High Mark at least twice a year. free credit report Download.

• If any incorrect entry, incorrect late payment or unknown loan account is noticed, immediately lodge a ‘Dispute Request’ on CIBIL’s online portal.

• According to the rules, it is mandatory for the bank and CIBIL to resolve this error within 30 days. Once the wrong records are removed, there may be an immediate jump of 40 to 50 points in the score.

For those whose credit score has gone below 650 due to default or who do not have any CIBIL record (CIBIL-1 / New to Credit), FD-Based Secured Credit Card The most effective solution. Make a fixed deposit of ₹ 20,000 to ₹ 50,000 in any bank and take a credit card in exchange for it. Make small expenses like petrol or grocery with that card and make the payment on time every month. Within just 6 months your new and stronger credit score will be ready.