Paisabazaar CIBIL Score- If you want to improve your credit score, you will need time and patience with the right approach to increase it consistently. There can be many reasons for your low credit score. This can happen due to many reasons such as poor payment track record, high credit utilization ratio, errors in your credit report, etc.
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How much time does it take to build your credit score in Paisabazaar Cibil Score
Building a credit score can be easy for those who have never defaulted on their payments and have been prudent in their payments. For those who have consistently failed to make payments on time and have not been disciplined in their payments, it can be difficult to score.
It can usually take six months to a year to rebuild your damaged credit score. If your credit score is around 750 and you take proper steps to build your credit score, you will see a positive impact within six months and a higher credit score at the end of the year. However, the time it takes to rebuild your credit score varies from case to case.
Thus it is recommended that you follow the steps to improve your credit score beforehand so that you have a good score when you really need a credit product. It is worth mentioning that lenders prefer applicants who already have very good scores, preferably above 750.
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How to Build paisabazaar cibil score by aadhar card
1. Improve Payment History for Paisabazaar Cibil Score
With the regular and timely payment of credit card EMIs and loans, your payment history improves thereby increasing your credit score. Even if you miss a single payment of a credit card or loan EMI, your credit history gets affected a lot which lowers your credit score. Therefore, a good payment history plays the most important role in building your credit score.
2. Reducing Credit Utilization Ratio
The credit utilization ratio is an important factor that affects your credit score. To maintain a good credit utilization ratio, it is recommended to use less than 30% of the total available credit limit.
Using a credit limit in the 60-70% range may not affect your credit score, but having a high CUR in the 90-100% range can negatively impact your credit score by maxing out your card.
Therefore, to avoid the cost burden of a single credit product, it is better to share the burden by using multiple credit lines, as it helps in reducing the credit utilization ratio in the near future.
3. Maintain a Good Mix of Credit
The credit mix can be maintained by taking more secured loans as compared to unsecured loans. Secured loans, such as home loans or car loans, help in boosting credit scores because they are long-term valuable assets. Since the repayment tenure of the home loan is longer, it becomes clear that the borrower will make regular payments to the lender for a longer period, which will help in maintaining and balancing the credit score.
4. Avoid Closing Old Accounts
Most people have a misconception that poor performance or closing old accounts can help boost their credit score, which is wrong. Hence, it is advisable not to close your old account or old credit card, as it negatively affects your credit score. Old accounts reflect your long-term association and relationship with banks or NBFCs (Non-Banking Financial Institutions), which are considered good by the credit bureaus. This further helps in improving your credit score.
5. Regular Monitoring of Credit Reports
Keeping track of credit reports regularly is an important exercise in maintaining and rebuilding credit scores. Examples may include inaccurate or inaccurate personal information appearing on your credit report, which must be reported to the credit bureaus immediately by submitting a dispute. An error-free credit report can be further checked to manage personal finances and avoid falling victim to identity theft.
6. Don’t Apply for Multiple Credits
Applying for multiple credit products at once paints you as a credit-hungry person, and this credit-hungry behavior is quickly tracked by the credit bureaus leading to a further drop in credit scores. Hence, avoid applying for multiple credit products at once. Even banks and NBFCs are skeptical about approving such applicants, as they find a high-risk individual who may be unable to repay the loan amount on time and may face loss for the lender.
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What is the purpose of a credit score?
The primary purpose of a credit score or credit report is to help lenders decide whether an individual is eligible to access credit. Hence, your credit score plays an essential role in meeting your financial needs, as it acts as the most important decision factor for the lender. The better the score, the better the chances of getting approved for a credit card or loan.
Additional Tips to Improve Credit Score
If you are still looking for ways to increase your credit score, here are some additional tips that can be considered and implemented to improve your credit rating score.
Credit score gets affected if you inquire about other credit cards. Hence, this practice should be avoided and credit card checking should be done through online platforms without actually interacting with various credit card companies.
To keep your credit utilization ratio low, you need to reduce your dependence on credit. If your CUR is consistently high, you can request the bank to increase your credit limit or switch to an alternate payment method to make your purchases.
Maxing out your credit limit can lower your credit score significantly. So, keep a buffer limit and don’t exceed it
Make sure you only borrow what you need to pay off loans and bills
What is a Credit Score in paisabazaar cibil score?
A credit score is a 3-digit number between 300-900, which reflects your creditworthiness and summarizes your financial repayment capacity and capability. According to the credit bureaus, a score of around 900 is considered good, however, even a score above 750 is considered sufficient to qualify you for many financial products. It takes time to improve a credit score below 750 but still, there is a possibility for a person to reach the mark of 750 and above.
CIBIL Helpline Number
CIBIL has provided a customer care number so that people can get answers to their queries or file a complaint over the phone. They can call on the following number from Monday to Friday between 10:00 AM to 06:00 PM and communicate their issues to the customer support executives.
You can also send your queries through fax to (+91)22-6638-4666
Article Source PaisaBazar.com