Did you know the first thing that the lender will check when you apply for a personal loan? Yes, they check your cibil score of yours as the first thing!
Since personal loans are unsecured, they charge a higher interest rate because of no involvement of the collateral. And it is where you need to maintain better creditworthiness to get the loan approval.
The credit score is the mirror of your creditworthiness. If your credit score is not strong, then you will not get the loan approval.
Let’s check out a few ways you can improve your credit score to get the loan approval fast!
1. Pay off your loan and other EMIs on time
If you manage to repay your loan EMIs and other debts on time, then you can keep your cibil score higher and improved. By doing that, you can gain the confidence of the lender that you can repay on time, and get the loan approval.
2. Limit the credit utilization
If you have a credit card, then you should avoid using the entire limit as it will hurt your cibil score. The best thing will be limiting credit utilization to a maximum of 30-40%.
3. Opt for a mix of credits
Another way you can keep your cibil score improved is by opting for multiple types of credits such as secured and unsecured loans.
4. Keep a check on your credit report
Sometimes, there may be some errors on your credit report that you may not be responsible for. But that may hurt your cibil score. Hence, it becomes a must to check the cibil score and report and get all unauthorized entries sorted.
If you are able to consider these aspects, then you may be able to improve your cibil score.
If you want to check your cibil score for free, then you can do that on multiple platforms these days.
Must Read: Know How You Can Improve Your Cibil Score
