Top 5 tips to maintain your Cibil or Credit Scores

Top Five Easy Ways to Improve Your Cibil Score.


There are a few things you can do to improve your Cibil Score or Credit Score. Here are the top five easy ways to improve your credit score as stated below.


1. Make payments on time

2. Keep balances low on revolving credit cards

3. Don’t close old credit cards to improve the length of your credit          history

4. Don’t apply for too much credit to avoid inquiries

5. Always pay off your highest interest debt first


Make payments on time:-

Delay payment, even if a matter of few days and collections would make a significantly negative impact on your Cibil Scores. Use payment reminders through your banks' online portals if they offer the option. Consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, which are commonly known as ECS.

Keep balances low on credit cards:-

Your credit utilization, or the balance of your debt to available credit, contributes 30% to a Cibil Score's calculation.
It is very important to pay the total amount due to your credit card, it requires financial discipline to maintain your credit card bill under 30% of your total credit Limit, high outstanding debt can negatively affect your Cibil score.

Don’t close old credit cards to improve the length of your credit history:-

It's very important that you should never close your old credit cards as closing old cards do not help to maintain Long credit history and thereafter not helpful to maintain your cibil score. Between new and old card one should always use old one under 30% of your credit limit.

Don’t apply for too much credit to avoid inquiries:-

If you keep on applying for new cards and loans with different banks in a short period of time, then this approach could backfire and actually lower your credit scores. Whenever you get a call from any credit card company or loan you should never say yes until and unless it's absolutely required.

Always pay off your highest interest debt first:-

Talking about paying your debt its important that everybody should pay off debt which has a higher interest rate.
In terms of interest rate, Credit cards commonly have more interest rates than other debt, where interest rate for a credit card could be more than 28 to 36%.  Apart from Credit cards, Personal loans also have more interest rates which could possibly stand at 12 to 18 % and in some cases more than that.

Read the Blog to understand What is Credit Report?

 

What affects your cibil score or credit score?

We at Chakde Credit believe that there are 5 Major Factors Which affects your Cibil Score or Credit Score are:-

• Payment History: 35%
• Credit Utilization: 30%
• Length of Credit History 15%
• Different types of Credit: 10%
• New Credit: 10%

Payment History:- 

                                Chakde Credit expert believes that payment history has the biggest influence on your cibil or credit score. It's important to pay your credit card bills and EMIs of every loan you got before the due date. Paying 30 or 60 days late can hurt your score by 60 to anywhere 90 points.

Credit Utilization:-

                                 It is very very important that you keep your eye on your credit card utilization ratio. According to our expert's study on scores it shows that you should ideally not exceed more than 30% of your credit limit.  If any of your cards you have used over 60% of your credit limit, it can have a negative effect on your score as it shows to lenders that you are at higher risk of defaulting.

Length of Credit History:-

                                             In simple terms, credit history means the total number of years that have passed since you have first opened or get your loan or credit card. If you have a long credit history it helps banks or financial institutes take a good decision at the time of offering you a loan or any cards. It is very important that one should focus on building a credit history in the earlier stage of life as, by the time you apply for a home or car loan, you will have a good record on your credit report.

Different types of Credit:-

                                            It is important to maintain a healthy balance of secured and unsecured loans. Home loan and Cars loan are examples of secured loans while a credit card and personal loan is an example of unsecured loans. If you have a high number of only one type of credit, it can affect your score. It is ideal to have a mix of both secured and unsecured debt on your cibil or credit reports.

New Credits:-

                       When you apply for a new loan or credit card, banks want to check your credit reports and they will do this by pulling your cibil reports. This is called a hard inquiry. If you send out to many applications, it will mean that multiple credit inquiry is occurring around the same time. This hard inquiry is reported and affect your cibil score negatively. It will make you look credit hungry. It's important that you should only apply for loans or cards when it is absolutely required for your life.

Read the Following Blog to Know How to understand your credit score?

. 

What is a Good Credit Score?

Credit scores range from 300 to 900. A good credit score will usually be in the 750–800 range and more then that means excellent. The higher the score, the more easily you will be approved for a loan or a credit card, and the lower interest you will need to pay. Understanding credit can be tricky, but it’s not a new concept. Many people use credit responsibly and it’s helped them secure lower interest rates on loans for the things they need like homes and cars 

For over a decade, Our expert helped consumers challenge negative information on their credit reports that is unfair, inaccurate, and unverifiable.

A decent financial assessment is something that everybody would consistently need to have on the grounds that it's the evidence to the bank that you are mindful of your credit. People with a decent financial assessment are moneylenders' joy when they need to broaden credit. You should be thinking about what precisely a decent financial assessment is and how the Credit rating is determined. Let us look in insight concerning the great Credit rating and its advantages.

 Among the things a good credit score can help you get:-

An unsecured credit card with a very low-interest rate.

A desirable car loan with a low-interest rate.

A Home loan, mortgage.

A way to pay expenses in a crisis in the event you don’t have an emergency fund or it runs out.

Personal loans with low-interest rates.

Education loan for your children.

Read the following Blog to understand Top Five Easy Ways to Improve Your Cibil Score.

For any other question regarding your cibil score or credit score, you can contact www.chakdecredit.com they will happy to help you with any problem regarding your Cibil report or other reports

How to understand your credit score?

In India, Credit Score falls on the range from 300 to 900. When someone asks you “How’s your credit?” or "How's your Cibil Score?" they are normally alluding to the data on your credit report. Your credit report calculates a credit score for you based on the amount of money you’re borrowing or have borrowed from all of your different Banks and Financial Institutes. It then takes into account how you have paid back these Loans. In India, we have 4 major credit reporting agencies and they are in-charge of looking at this information to predict the likelihood that you will pay back the money you are asking to borrow. Your past credit history will determine whether you are able to get a loan and, if so, what interest rate you will be offered. A higher credit score means a lower interest on every loan you have been offered by banks. If your credit score is low that means you will get loans with a higher interest rate to compare to a good credit score person. You can contact www.chakdecredit.com for more information on any issue reading your credit score.

The four primary credit authorities – Cibil, Equifax, Experian, and Highmark – make your credit reports, which commonly goes from 300-900. The credit authorities can likewise compute scores for you dependent on their own restrictive models. 

Your scores are commonly founded on things like how regularly you cause installments on schedule and what number of records you have on favorable terms. 

Your score will never factor in Personal Info like your race, sexual orientation, religion, marital status, or national source

You can read the following blog to understand What affects your Cibil Score or Credit Score.

What is Credit Report?

Banks utilize your credit report so as to pass judgment on your unwavering quality as a loan candidate. Your credit report demonstrates your capacity to deal with obligation mindfully and will assist keeps money with choosing if you are an alluring Loan client. A high Credit Score can assist you with securing low-Interest rate or secure unique arrangements on Loans. A Bad credit report may keep you from making sure about Loans and can harm your capacity to purchase a vehicle, to get a credit card, or find a decent line of work now. A background marked by the powerlessness to deal with your credit effectively will make loan specialists awkward about confiding in you with extra assets later on. You are qualified for a free duplicate of your credit report once per year, an offer you should explore. At the point when you do get your credit report, check to guarantee the figures are exact and act rapidly to address any mix-ups. This may incorporate any administrative blunders, data fraud issues, or wrong data. On the off chance that your Credit Score is low, you should start chipping away at a money related restoration plan, either all alone or with an ensured Credit Repair Consultancy, to start amending your bad debt habits.