Is your bank not accepting credit cards? Are banks turning down your loan applications or charging higher interest rates than others? It would be quite frustrating, especially if you needed money right away. But why is this happening to you? And why didn’t the lenders approve your loan or credit card? The explanation is that your CIBIL score may be too low. So, find out how to raise your CIBIL score quickly right here.
CIBIL scores your creditworthiness based on factors such as payment history, credit use, credit length, credit mix, and multiple recent credit inquiries. These indicators are assigned weights, and a consolidated score is generated to determine your creditworthiness. The score runs from 300 to 900, and here’s what each range means.
There are numerous ways to increase the CIBIL score. Though the optimal credit score varies depending on the type of loan, a score below 650 is considered undesirable, and lenders may have difficulties trusting you to repay your credit and hence reject your credit card or loan application. Even if they approve your loan application, they may raise the interest rate. If your CIBIL score is low, you will miss out on a variety of other chances, not simply those offered by banks and financial organizations.
How on time payments affect your CIBIL score?
Your payment history has a significant impact on your credit score. Missing a payment will significantly reduce your credit score. Partial payments are equally detrimental as skipped payments. If lenders notice that you are not a regular borrower, they may refuse to provide you with a loan or credit card.
So, in the future, make sure you never miss a payment on your loans or bills to help your credit score rise swiftly. Using a cashback credit card also relates to your CIBIL score.
Automate loan payments from your income account to ensure that you never miss a payment accidentally. Also, set aside a suitable amount for loan and bill payments for the coming month to ensure that you never run out of money and fail to pay. You can also schedule calendar reminders to ensure that everything goes smoothly. By doing this, you may also earn credit card rewards.
Are you someone who has never missed a monthly payment? If so, this may not be the best answer to your question. How to Improve Your CIBIL Score. Then check to see whether you’ve paid any bills late. Both missed and late payments will have an impact on your credit score. The longer your payment is past due, the lower your score.
Even a single late payment, particularly if it is recent, will harm your credit score. Thus, you can use an UPI credit card to make instant payments. Late payments indicate that you are unconcerned about paying your debts and may have a bad influence on your credit score, giving the impression that you are not reliable.
Schedule payment dates and automate payments to ensure that you always pay on time. Make sure you stick to the schedule. Don’t forget to create reminders to ensure that you have paid all invoices on time. Credit cards like the Rupay credit card provide many perks for timely payments.
