A higher cibil score is a significant aspect while applying for a small personal loan and other debts. Yes, it is a vital eligibility parameter while availing an unsecured loan. And it could be a small personal loan to other options.
#1 Try to maintain a mix of credits
By maintaining secured and unsecured loans, you can easily keep your credit score always healthy.
#2 – Pay your EMIs on time
Come what may, you must ensure to pay off your current loan EMIs and credit card outstanding before the due dates.
#3 – Resolve discrepancies
If you see any incorrect entries on your credit report, it may affect the cibil score. Thus, get it resolved at the earliest.
#4 – Keep your old credit card account active
If you have managed to pay the oldest credit card, then it will be suggested to keep it active. It will help you boost your cibil score.
#5 – Keep a lower debt to income ratio
Make it a point to ensure having a lower debt to income ratio. It will help you keep your cibil score on the highest side and get bigger loan amounts. You should see that your small personal loan EMIs is not eating more than 30-40% of your monthly income.
#6 – Get your credit limit increased
If you want to use more of your credit card’s limit, then it would be suggested to get it extended by your lender. If you don’t, then your cibil score will be hampered.
#7 – Go for a longer loan tenor
Opting for a longer loan tenure will help you manage smaller EMIs per month. You will find no issues in paying it on time. In turn, it can help you have a strong credit score.
You can start following these discussed tips and get your credit score improved. Once done, then you will find no issues in getting the approval for the small personal loan.