Your credit score is a crucial parameter for banks to assess your creditworthiness and risk factor associated with you if they extend you the loan. So, in case your credit score is low and you plan to take a loan in the future or even if the next loan is not planned, you should really get going with steps to improve your CIBIL score. This is because it will take time to improve and the longer you delay the harder it will get to improve.
Some key tips are:
a) Make sure that your credit report is accurate and free from errors. Check each record present in your credit report and dispute any error that you find.
b) Simply disputing the error will not be enough you need to pinpoint what the error is and what is the correct information with which it needs to be replaced. Also, note that it is possible that your credit score remains low even after correction due to the differential weight of nature of information used by credit agency to calculate the credit score.
c) Keep your credit utilization ratio in check, the ideal ratio is 30%.
d) Make sure to pay your dues on time.
e) Eliminate multiple credit cards with balances and keep one or two cards for all uses.
f) In case you have never taken a credit card then get it now, your score might be suffering due to lack of credit mix.
Read it completely : Increase Your Credit Score with These Simple Steps
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