Eager to take a loan? Check out 3 easy steps to make your CIBIL score good and increase your credit worthiness

New Delhi: Indian credit information provider CIBIL (Credit Information Bureau India Limited) collects financial data for preserving credit records. Partners like banks, lenders, and other financial institutions communicate information with one another. In order to assess a person's creditworthiness, CIBIL evaluates this information.

A score between 300 and 900 is calculated as a result of the review, and it essentially represents a person's credit history. (Also read: Rs 147.5 debited from your Canara Bank account? Know why )

1. Eliminate overdue balances

Any overdue balances on loans should be paid off promptly; any level of carelessness in failing to do so will get you into difficulty when asking for a loan and lower your credit rating.

2. Dispute errors if any

Check your errors on WWW.CIBIL.COM and dispute them should there be any. Even lenders occasionally make mistakes when processing your application and entering data. Every financial institution has a 30-day window to resolve any disputes. So be vigilant and double-check your work. Your credit card rate will increase once all disputes are resolved.

Pay EMIs on time

When using a credit card to buy anything, be sure to pay all of your invoices and EMIs on time. This will enable you to deal with CIBIL more effectively. Additionally, it will improve your chances of raising your CIBIL score.