The credit score is one of the key aspects when it comes to availing loans, especially unsecured ones.
 

Unsecured loans are offered on the basis of your creditworthiness. And your credit score is the first thing that your lender checks to determine it.
 

Anyone with a cibil score 750 and more can get loan approval at a lower rate. But if you have a poor cibil score, then you may not get the loan approval. And even if it is done, it may be at a higher interest rate.

Thus, when are the best ways to improve your low credit score? Let’s find out in this post!

1. Pay your bills and EMIs on time
   If you can pay your bills toward the credit card outstanding and loan EMIs, then you can keep your cibil score higher. Defaulting or making a late payment can adversely affect your credit score. Thus, always ensure to pay your all bills on time, every time.
    
2. Maintain older credit card accounts
   Do you have an old credit card account that you have managed to pay on time? Don’t close it. Why? As long as you are able to pay your bills on an old credit card account, it can help you enhance the credit score for sure.
    
3. Keep a mix of secured and unsecured credits
   You can improve your credit score by maintaining a mix of secured and unsecured debts as well.
    
4. Go for a longer tenor
   Taking a longer tenor means paying smaller EMIs. And it may be easier for you to manage. In turn, you will pay the EMIs on time, and it will assist in enhancing the credit score.
    
5. Maintain a lower debt to income ratio
   Paying more than 50-60% of your monthly income for EMIs and other payments means that you have a higher debt to income ratio. Try to keep it up to 30% for the cibil score to improve.
    
6. Don’t take too much debt at a time
   You should take one loan, repay it and then take another. If not, you will be in an unending cycle of debts. It will surely take a toll on your cibil score.