Friday, 20 July 2018

ts Been 3 Months I Am Trying But My Score Isn’t Getting Up


Building a good credit history makes our life a lot easier. It helps in qualifying for loans and credit cards at low rate of interest and get better car insurance rates. But often people forget to monitor their CIBIL score on a regular basis. They check their score just before they are about to apply for a loan. If they find that their credit history is not in good shape, they have very little time left to improve CIBIL score.
Increasing credit score take a lot of effort and time. If you have been making efforts to improve your score, but not seeing any substantial results in the past 3 months, it is no surprise. If you have serious bad remarks on your credit report, it may take a year or two to get things back in shape. You cannot expect a miracle to happen in just a few months.
However if your score took a hit because of reasons like high credit utilization rate or an account that went into collection, there are some measures that you can take to raise your score fast be a few points. Sometimes even a small leap can give you options that you didn’t have earlier. So if you want to take a home loan or personal loan, and do not have much time to boost CIBIL score, you can use the following measures to improve CIBIL score fast.
Pay off credit card debts- A major contributing factor of the credit score is the ratio of the outstanding debt to the total available credit limit on the credit cards. Maxing out your credit limits increases your utilization ratio and brings your score down. If you pay off your credit card debts, you will immediately bring the utilization level low and help in giving a boost to your score. So if high utilization level on credit cards was the reason for a low score, you can see a marked improvement in just 1-2 months.
Going forward, you can make credit card payments twice a month to keep your utilization levels low. You can also check and find out if you can get approved for a raise in the credit limit. A higher limit will also help in reducing utilization.

Get current on payments- If you have accounts that are past due, bring them current to rebuild your credit. Since payment history accounts for 30% of your score, no strategy will work to increase your score, unless you start making payments one time. If any of your accounts go into collection, it has an immediate negative impact on your score. Pay those collection accounts immediately and ask the agency to do a pay for delete. Get a letter in writing that the collection agency will remove the account from the report once you pay the agreed amount. Once the collection entry drops off the report, it will bring an immediate boost to your credit score.
Fix errors on credit report- Sometimes a low CIBIL score is not the result of our own mistakes but because of errors on the part of the bureau. Check your CIBIL report for inconsistencies and dispute them by filing an online application. The bureau must respond to these disputes within 30 days. Once the errors are corrected, you will see an improvement in your score. You are entitled to a free report from all the credit bureaus once every year. So you can order these reports and check them on regular basis.
Get added as an authorized user- If any of your family members has a good credit score, you can request him to add you as an authorized user on his credit card. By being an authorized user you can reap the benefits of good credit history of the primary card holder. That’s because the credit card account details will be reported in both the CIBIL reports. So if the credit card account is open for a long time and has good payment track record, it will benefit your score too.
If you plan to apply for loan, it is advised to check your report at least 6 months prior, so that you have sufficient time to work on your credit if it is not upto the mark. Follow the above strategies to bump up your credit score.

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