Opposed to what most people would like to assume, boosting CIBIL score can be done even with a secured loan. Here’s how?
1. Take a loan against property: The first and foremost requisite is to take a loan against property since you’re planning to use that for credit-score improving activity. Thus, find a good mortgage loan scheme available in your area or your country by national banks and NBFCs. Later on, compare them based on benefits they offer you such as maximum loan amount, interest rate at which loan is offered, the maximum time offered for repayment. However, ensure most of your loans are paid off by the time you plan on applying for a new one. This would lower down your debt-to-income ratio and hence, increase your credit eligibility.
2. Settle all your existing debts or simply consolidate them: This would ensure you don’t miss your EMIs and you’re credit score remains unaffected. That said, there’s a process you’ll have to follow: (1) get approved and wait for disbursal of your mortgage loan, (2) apply for foreclosure of all your existing ones, (3) pay the due amount and obtain ‘NDC’ No Dues Certificate.
3. Make a repayment plan and pay the EMIs: Coming to the most important step, make a repayment plan in advance and ensure the EMIs are paid in a timely manner. You miss one EMI and your CIBIL score goes down. If that happens, all your efforts up till now are wasted.
The last but certainly not the least, keep repeating this step with secured loan as well as unsecured loans whenever you get the opportunity. Keep doing it as long as you don’t achieve your desired CIBIL score.