If you don’t know what a CIBIL credit score is, it’s perfectly fine. But one day, you will need it, especially if you’re applying for a loan or buying a house. In my opinion, it’s better to learn about CIBIL credit scores early on so that you don’t have to worry about it later. In this article, we will talk about how to get a perfect CIBIL credit score.
To learn about CIBIL score, check out this article.
Here are my tips to improve and get a high CIBIL credit score (700+)
- Do not keep your credit card bills unpaid every month. Pay them off in full as they are billed every month (not before they show up).
- Buy things only for less than 20-30% of your credit limit. This is the ideal credit utilization limit, stick to it.
- Do not get too many credit cards at the same time (unless you know them really well). 2-3 would be ideal.
- Do not apply for a lot of loans at the same time, where they do a hard credit check. Too many applications can mean you are desperate for money.
- Do not keep credit cards un-used. Pay them off early on and keep the utilization ratio low (<30%)
- Get a secured credit card, if your credit card is low. Pay off the balances every month in full, and let your score increase.
So essentially, CIBIL credit score is all about your credit worthy-ness. There are many apps available today, that will help you to check your CIBIL credit score for free (keep away from scams). Use them to get a baseline number, be it low or good. Then use the tips above to improve your score, as you go.
All the best!