Thursday, 11 January 2018

8 Ways to rebuild the score

Imagine you think of buying a car and you decide to take a car loan. You go to the car dealership choose the model you want to buy, complete all the formalities which is required to purchase a car and submit all your documents for a loan. The next day you get a call from your dealer stating the loan is been denied due to a low credit score. Suddenly every financial mistake you have done in the past flashes in front of your eyes and you sit devastated thinking, why didn’t you take necessary steps to improve cibil score when you had the opportunity.
Why is a credit score so important? How can you improve your cibil score? These are the common question which arises, whenever you are denied a loan.
A cibil score is a compilation of your payment patterns associated with your ongoing loans and credit cards. A lender, before granting you any type of a loan will consider your credit score to determine the loan amount, interest rates and other factors associated with it. There are different types of loans associated with different needs and a loan can help you in many ways. Similarly, a good cibil score can help you score a loan in no time.
Many of us check our credit report only if we are applying for a loan. It later comes into our notice that the cibil score is bad and we need to rebuild it before applying for a loan.
Here are some steps to take to rebuild your credit :
Pay all Bills on Time
This one the most basic, from which you can improve your credit score gradually. Just make sure you are making all your payments on time so that your score rises gradually. It’s a lengthy process but your credit score will stay healthy.
Pay off any missed payments.
If by chance you have missed on any payment, not only you will land up on a loan defaulter list but also your score will get hampered every time the lender sends payment report to the bureau. Consult your lender on the missed payment and try paying it off, this way you can look after you cibil score. 
Put Credit Cards at ease
Majority of people who are suffering due to a bad credit report is because of credit cards. Make sure you do not overspend your limit and make time to time payments to the credit card lender. One default payment can hamper your credit score very deep, as this is one type of unsecured loan.
Take a small consumer durable loan
There are a lot of options available these days in terms of consumer loan. Take a small consumer loan and pay its EMIs on time, this will help you improve your cibil score.
Keep Good Accounts Open
If you have any unused credit cards, or an open loan account which you are not using for time being, make sure it stays open. Closing such accounts can result to a dip in your cibil score. Make sure to do small transactions on a frequent basis to keep a healthy score.
Keep Separate Accounts
It is suggested to keep separate accounts from your spouse or parents as a single default payment can also lead to your score destruction.
Stop the Inquiries
It is okay to check you cibil scores, just to understand how your scores are adding up. Do not make this a habit as this can lead to a lot of inquiries made on your account, which will then lead to a bad cibil score.
Fix errors on your credit report
There are a lot of times, where the credit bureaus make mistakes while making the entries. If you encounter such thing on your report, you can raise a dispute with the bureau and make sure to correct it.

There are many ways, you can fix your credit score but it takes a lot of time and determination to do it. if you start today, you will be able to fix your score within no time and in financial emergencies, you can get a quick loan with ease. After all “easy” should be a life’s definition. 

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