If you don’t know what a CIBIL credit score is, it’s perfectly fine. But one day, you will need it, especially if you’re applying for a loan or buying a house. In my opinion, it’s better to learn about CIBIL credit scores early on so that you don’t have to worry about it later. In this article, we will talk about how to get a perfect CIBIL score.
To learn about CIBIL score, check out this article.
Here are my tips to improve and get a high CIBIL credit score (700+)
- Do not keep your credit card bills unpaid every month. Pay them off in full as they are billed every month (not before they show up).
- Buy things only for less than 20-30% of your credit limit. This is the ideal credit utilization limit, stick to it.
- Do not get too many credit cards at the same time (unless you know them really well). 2-3 would be ideal.
- Do not apply for a lot of loans at the same time, where they do a hard credit check. Too many applications can mean you are desperate for money.
- Do not keep credit cards un-used. Pay them off early on and keep the utilization ratio low (<30%)
- Get a secured credit card, if your credit card is low. Pay off the balances every month in full, and let your score increase.
Also read: How to increase credit score
So essentially, CIBIL credit score is all about your credit worthy-ness. There are many apps available today, that will help you to check your CIBIL credit score for free (keep away from scams). Use them to get a baseline number, be it low or good. Then use the tips above to improve your score, as you go.
All the best!