CIBIL score plays a vital role in determining the eligibility of an applicant for personal loans and more. It is the first thing that any lender checks while processing your personal loan application.
In case if you want to get fast approval of your loans, then you need to have a strong credit score. A credit score in the range of 750 and more is what is considered the best to get the approval of a loan at a lower rate of interest.
Thus, the importance of CIBIL score is known in the financial world. Hence, before you want to apply for a loan and get the approval at a lower rate, you need to improve it if it’s not higher.
Go through this article and know more about easy steps to check out your CIBIL score for free and proven tips on how to improve it. Read on!
Steps to check out your credit score for free
- Initiate the process by filling the form on the official website of CIBIL
- Feed your personal details such as name, address and contact/mobile number.
- You will need to pay a reasonable charge if you want to know about your credit information report (CIR) and CIBIL score.
- Once the form is submitted and payment successfully made, your latest CIBIL score and report will be mailed to you.
What’s more, you can also mail your entire documents and a demand draft (DD) as charge to the CIBIL office in Mumbai.
After you have checked your CIBIL score and found that it is lower than 750, then you will need to follow easy steps to improve it. This way, you may boost your chances of getting your loan approved at a lower rate.
Quick ways to improve your CIBIL score super easy
- Set reminders for payments and be disciplined
You should know that your repayment of outstanding debt has a direct impact on your credit score. Therefore, you need to be disciplined when it comes to paying EMIs. You not only have to pay the penalty on missed or delayed payment, but it also lowers your CIBIL score. The best thing in this regard will be setting reminders for EMI payments so that you don’t miss anything and keep your credit score on track.
- Don’t close your older credit cards
If you have older credit cards, you should not close them as long as you can pay the bills, especially when you are looking to apply for a loan. It will help you build a strong credit history. In turn, it will assist you in increasing and maintaining strong credit score in the future.
- Choose a longer tenor while applying for a loan
While availing a personal loan, try picking up a longer tenor for repayment. It will lead to paying lower EMIs and ensuring that you can afford the amount easily. As a result, when you don’t default, miss and delay your payments, the CIBIL score will strengthen.
You can now follow the above steps to check credit score and even improve your CIBIL score by incorporating the tips. This way, you can apply for a personal loan at a lower rate and fulfil your financial needs accordingly.
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