A CIBIL Rating of less than 750 may hamper your chances of obtaining an instant Personal Loan. This is because it is a measure of your creditworthiness and is considered low/ bad and raises questions on your loan repayment ability. It is especially bad when you want to avail a loan to suffice those financial emergencies such as medical, debts and so on.
But, here’s what you can do to improve your low CIBIL score -
# Create a repayment calendar to clear off all your credit card outstanding. This may take a while but eventually will leave a positive impact on your CIBIL score. Lenders focus more on borrowers who are regular with their payments and have no outstanding to hamper their creditworthiness.
# Try to own not more than a single credit card. Having one credit card with sufficient balance and no outstanding will go a long way to leave a positive impact on your credit score.
# Maintain the 30% credit utilization limit in the credit card. This is essential as it will keep some balance free and signal the lender that you can maintain your finances well.
# Do not fill multiple credit card applications. This firstly, may not be needed and secondly, you may indicate to the lender that you depend on your credit way too much.
Check your credit report for any errors like miscalculations, typographical errors, etc. and raise an appeal only if the error is genuine. Once you file an appeal it takes the credit bureau usually 30 days to address it.
In case, you want to apply for a new loan do so only when the previous loans are settled. It will help you to easily avail credit when the previous outstanding have been cleared off.