Some critical criteria have to be met before availing a loan. One of the most important factors of availing a loan is having a good CIBIL score or credit score. TransUnion CIBIL is one of the 4 bureaus which generate credit scores in India.
Maintaining a good credit score enables a borrower to avail loan against property faster. Learn how to increase CIBIL score over time by following up on these 5 factors –
- Paying Credit on Time – Borrowers should become organized in order to pay their debts on time. Delayed EMI payments not only lead to the payment of a penalty but, delayed payment also affects the credit score. Regular payment of dues influences credit score positively.
- Avoid Opting for Too Many Loans – Opting for multiple loans tends to lead to an endless cycle of defaults. Reducing the number of existing loans helps increase the credit score and avoid further debt accumulation.
- Opt for a Longer Tenor – Another smart way of repayment is to apply for a longer tenor while opting for a loan. With a longer tenor, EMIs become lower. Low EMI makes paying debts easier, which ultimately increases the CIBIL score.
- Check CIBIL Reports for Mistakes - A borrower must check for the generated CIBIL report and rectify them. Else, can negatively affect the overall score.
- Keep a Tab of Joint Accounts – Another way of ensuring a good credit score is to monitor the joint accounts regularly. Even minor negligence in part of the joint-account holder may negatively affect credit score.
The above-stated factors enable an applicant to understand how to increase CIBIL score. To avail a more beneficial loan, keeping the CIBIL score above 750 is recommended. It should be noted that any individual’s credit score affects their loans against property eligibility.