Connect with us

Business & Finance

Six long-term strategies for improving your CIBIL score



How to improve CIBIL score in the long term? Here are six strategies

Improving your credit score is a crucial step towards financial stability. Thirty-one-year-old Ashish Mehra recently found out that his CIBIL score is only 590. Seeking ways to boost his score, he came across common suggestions such as paying credit card bills on time, reducing debt, increasing the length of credit history, and maintaining a diverse credit mix.

To improve your credit score in the long run, consider the following strategies:

1. Pay bills on time: Payment history significantly impacts your credit score. Late payments can have negative consequences, so always strive to pay bills on time.
2. Reduce debt: High levels of debt relative to credit limits can lower your credit score. Aim to keep your credit utilization ratio below 30%.
3. Length of credit history: Avoid closing old credit accounts as they contribute positively to your credit age and overall score.
4. Monitor your credit report: Regularly check for errors or inaccuracies that could be affecting your score.
5. Credit mix: Having a variety of credit types can positively impact your score if managed responsibly.
6. Authorized user: Being added as an authorized user on an account with a strong credit history can help boost your score.
7. Use credit responsibly: Borrow only what you can afford to repay and avoid maxing out credit cards.

Remember, improving your credit score takes time and commitment. Stay patient and dedicated to these strategies for long-term success.

It is essential to pay bills on time, as even a single missed payment can negatively impact your credit score. Payment of debt is crucial for maintaining a good credit score, but responsible financial management is ultimately what leads to a high CIBIL score. Regularly reviewing your credit score helps track your progress and identify any changes. Student loans can help establish credit history and add diversity to your credit mix, especially if they are your only installment loans.

Click to comment

You must be logged in to post a comment Login

Leave a Reply