CIBIL Score: You are not getting a loan due to poor CIBIL score, you can fix it with these 6 ways..

How to Boost Cibil Score: When you apply for a home loan, personal loan, or car loan, your CIBIL score is very important. This score ranges from 300 to 900 and reflects your creditworthiness. The CIBIL score decides whether you will get a loan or not and if you get it, what will be the interest rate. This score is based on your credit history, such as loan and credit card repayments, credit utilization ratio, and other financial transactions. A higher CIBIL score provides better loan prospects.

A good CIBIL score (usually 750 or more) increases the chances of getting a loan and credit card. Also, a good CIBIL score ensures your low interest rate. Let's know about five ways to increase your CIBIL score-

Pay credit card bills and EMIs on time-

Repayment history contributes significantly to the CIBIL score, which is about 35%. Timely repayment shows responsibility for your financial behavior and improves your score. Therefore, make it a habit to always pay your credit card bills and loan EMIs before the due date. Setting up auto-pay will ensure timely payment from your bank account. If you are late in making payments, contact the lender and discuss a payment plan. This will help you avoid default.

Credit Utilization Ratio is the ratio of the amount used against the total limit of your credit card. It is an important factor (about 30%) in CIBIL score. Your CUR should remain less than 30%. Use only 30 percent or less of your credit card limit. For example, if your credit card limit is Rs 1 lakh, then do not spend more than Rs 30 thousand in a billing cycle. If your spending habit is high then request the bank to increase your credit limit.

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