5 Golden tips to increase your CIBIL Credit Score

5 Golden tips to increase your CIBIL Credit Score

First, understand - what is CIBIL & Credit Score.

TransUnion CIBIL Limited is Credit Information Company;
that takes information from Banks and Financial Institutions (FIs) on Monthly basis and;

prepares Credit Information Report (CIR),

Basis the CIR, a Credit Score is generated.

This Credit Score is called as CIBIL Score/ Credit Score.

What Credit Score shows?

Credit Score is 3 (three) digit score,
Range - 300 to 900

Higher, the BetterGreen zone shows welcome action/ comfort by Banks. Credit Score more than 750 are considered good for giving loan by Banks.

Now, How to increase CIBIL Score:1. Banks/ FIs provides data to CIBIL on monthly basis, hence, try to pay credit card dues/ interest payment before month end. This will shows dues from you as NIL and improve your score.2. Combination of Secured and Unsecured loans can improve your score for example, unsecured loan (Credit Card/ personal loans) for all needs is shows as negative for CIBIL purposes, unlike with Secured loans (Auto loan/ Home loan).3. Do not take new credit card/attractive interest loans too frequently.4. Whenever you are eligible for increase in credit limit, go for it. Its good for CIBIL.5. Note the following: - Salary Credit every month adds 2-5 point in Credit Score. - Secured loan repayment on time adds 10-15 point in Credit Score. - Cheque clearing adds 2-5 points in Credit Score. - Monthly 5 lakh- 10 Lakh value transaction adds 5-10 point in Credit Score. - Every time checking of Credit Score eats 2-4 point in Credit Score.And Finally, be cautious, be aware and be Informative.

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