10 Ways to Improve Your CIBIL Score Quickly

Many women face financial hurdles because they might not know ‘how to improve CIBIL score quickly?’.

At Lxme we help you understand your finances so you can take control of your future. Let’s break it down step by step.

What is a CIBIL Score, and Why Is It Important?

A CIBIL score is a 3-digit number that represents your creditworthiness. It ranges from 300 to 900 and a score above 750 is generally considered good. Lenders use this score to decide whether to approve your loans or credit card applications. A higher score means better chances of approval and lower interest rates.

Now, let’s dive into 10 actionable ways on ‘how to increase cibil score immediately’.

1. Check Your CIBIL Report Regularly

First, get your CIBIL report to see where you stand. Errors like wrong information or wrongly reported defaults can pull down your score. Dispute any discrepancies immediately by contacting CIBIL.

Quick Tip: Check your report at least once or twice a year to stay updated.

2. Pay Your Credit Card Bills on Time

Timely payments have the maximum impact on your CIBIL score. Even a single missed payment can negatively impact your credit score.

According to TransUnion CIBIL, 79% of loans are approved for individuals with a CIBIL score above 750, highlighting the importance of consistent on-time payments.*

How to Increase My CIBIL Score: Set reminders or automate payments to ensure you never miss a due date.

3. Keep Credit Utilization Low

Using too much of your credit limit signals financial stress to lenders. Aim to keep your credit utilization ratio below 30%.

Example: If your credit limit is ₹100,000, try to spend less than ₹30,000 monthly to maintain a healthy ratio.

4. Avoid Frequent Loan Applications

Applying for multiple loans or credit cards in a short span can make you look credit-hungry, which negatively impacts your CIBIL score.

How to Improve CIBIL Score Immediately: Space out your applications and apply for credit only when needed.

5. Use a Secured Credit Card

If your credit score is low, consider applying for a secured credit card. These cards are issued against a fixed deposit, making them easier to obtain even with a poor credit score.

How to Improve My CIBIL Score: Treat your secured credit card like a new opportunity.  Pay off the balance in full each month, and your credit score will gradually increase.

6. Pay Off Outstanding Loans

Clearing outstanding loans reduces your debt burden, which directly boosts your score. Focus on high-interest loans first.

Lxme Tip: Create a repayment plan that suits your income and expenses.

7. Avoid Settling Loans

If you’ve defaulted on a loan, lenders may offer a “settlement” option. Avoid this, as it negatively impacts your credit history.

How to Improve My CIBIL Score Quickly: Always repay the full amount owed, even if it takes longer.

8. Maintain a Healthy Credit Mix

Having a mix of secured loans (like home loans) and unsecured loans (like credit cards) showcases your ability to handle different types of credit.

Example: Borrowers with a balanced credit mix tend to have higher scores, according to CIBIL insights.

9. Don’t Close Old Credit Cards

The longer your credit history, the better it is for your score. Even if you don’t use an old credit card frequently, keep it active.

How to Increase CIBIL Score Immediately: Use old credit cards occasionally to maintain their activity.

10. Monitor Co-Signed or Joint Accounts

If you’ve co-signed a loan, any default by the primary borrower can impact your CIBIL score too. Regularly monitor these accounts to ensure timely repayments.

Lxme Reminder: Communicate with the primary borrower about repayment schedules.

Take Control of Your Financial Journey with Lxme

Improving your CIBIL score isn’t just about numbers; it’s about building a strong financial future. At Lxme, we empower women to understand and manage their finances effectively. Start applying these tips today, and you’ll soon see your score rise.

Your next step? Check your CIBIL score today and take charge of your financial health.

Remember: You’ve got this, and the Lxme – investment for women is here to guide you every step of the way!

Moreover, Lxme also offers personal loans online, if you wish to take one you can check out the Lxme app.

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