7 important tips to Clean your CIBIL Score record

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An individual’s financial credibility is measured by their credit score. Usually, credit score is provided by an agency named CIBIL or Credit Information Bureau India Ltd. CIBIL score ranges from 300 to 900. In order to get approval for loan or credit card, you must have 750 or above CIBIL score. Moreover, a good credit score helps in getting a loan at a lower rate of interest. If you have a good credit score, you will be considered to have a good repaying capacity. So, it’s mandatory to have a good CIBIL score.

Here are some important tips as to how you can clean your CIBIL Score record-

  • Audit the Credit report- In order to clean your CIBIL score, you must first audit your CIBIL report. Do check the whole CIBIL report thoroughly. In case of any discrepancies like- CIBIL report of wrong account, incorrect details like- PAN no or name, incorrect account related details like- wrong credit limit and the amount repaid, or considering your closed account as open and much more, you need to report this to the concerned agency and the lending institution.
  • The increase of credit limit– If the bank offers an increase your credit limit, be smart and accept it. It means that you are trustworthy in the eyes of the bank. This helps in cleaning your CIBIL score. But increasing the credit limit does not mean that you will overspend it.
  • Credit Card Bill- One of the most effective ways to clean your CIBIL score is to pay off your credit card bill. Rather than paying the minimum outstanding balance of the credit card, always pay the complete credit card bill. If your credit card bill remains unpaid for a few months, then your CIBIL score will reduce.
  • Credit Utilization Ratio- When using a credit card, limit it’s usage up to 30% to 40%. Keeping your credit card utilization ratio within the above mention limit will help in cleaning your CIBIL score record.
  • Debt- If you have multiple loan liability and credit card dues to pay, then it reflects your credit hunger. Always try to minimize the loan liability and pay off the credit card dues within the interest-free period. This will help in cleaning your CIBIL score record.
  • Avoid Overspending- Credit cards are very convenient to use, so people usually spend it without any limit. You should use the credit card to an amount that you can repay it later without any hassle. Optimized use of credit card helps in cleaning your CIBIL score record.
  • EMI payments- If you have any existing loan liability, be responsible enough to pay the EMI within the specified time period. Proper EMI payments against your loan will definitely help in cleaning your CIBIL score record. 

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