To maintain a healthy CIBIL score, it is important to reduce your credit utilisation limit. You should not use more than 30 per cent of your available credit limit.
Irrespective of the type of loan you have availed, always repay it on time to build a good CIBIL score. Any delay in repayment negatively affects your credit score.
It is better to keep the frequency of loan applications low if you want to maintain a healthy CIBIL score. Don't keep on applying for loan if you don't need one.
Errors in the credit report may pull your credit score down, so it is important to evaluate your credit report. Check your credit score every six months to asses it for errors and wrong penalties.
Request for higher credit limits if you feel like you need more credit. This will cut your credit utilization ratio and will improve your credit score.
It is good to maintain a healthy credit mix of secured loans like auto loans, home loans, or unsecured loans such as personal loans, and credit cards, to build a good CIBIL score. However, again, you should not miss the due payment deadline.
To maintain a healthy CIBIL score, ensure that you never max out your credit card limit.
To boost your credit score, clear your credit card balances before the due date. Avoid making payments on the last date as any delay in processing will make you a defaulter.
Go for longer repayment tenure when taking a term loan because the EMI will be low and you can easily make all the payments on time.
Your CIBIL score will increase if you avail of a secured credit card from leading banks against a fixed deposit and repay the balance on the due date.