5 smart ways to help you improve your CIBIL Score

Your journey to a stellar credit score begins here! Explore five clever tricks, enhanced by the insights from Bajaj Finserv Credit Pass, to ensure your financial success.

Did you know that your CIBIL Score can make or break your chances of getting a loan or a credit card? Your CIBIL score is a three-digit number between 300 and 900 that reflects your credit history and behaviour, and it holds the key to realising your financial dreams. If your score is low, your financial goals may feel out of reach. But there’s no reason to panic. Small steps in the right direction can help strengthen your score over time. In this article, we’ll explore five smart strategies that you can implement alongside personalised insights from Bajaj Finserv Credit Pass to help you boost your credit score.

1 Know your score
Understanding where you stand is the first step to getting your CIBIL Score to where you want it to be. After all, you can’t improve what you don’t measure. Grab a free credit report from the official CIBIL website and take a moment to carefully review every section of your credit history. Look for areas that need improvement and for any irregularities and take note of them. Finding these now prevents headaches down the road. Identify and celebrate sections that showcase prudent credit management so you can keep up those habits.

Keeping tabs on your credit status is easy with the Bajaj Finserv Credit Pass because it gives you access to monthly CIBIL Score updates and your Credit Health Report in real-time.

2 Pay on time, every time
Out of all the factors that influence your CIBIL Score, your payment history carries the most weight. When it comes to timely bill payments, every day counts. Even being a few days late can negatively impact your score.

Set calendar reminders, mark due dates in bold, or try auto-pay to ensure you never miss a payment. Instead of leaving it to chance or memory, take control using helpful tools like the personalised dashboard offered by Credit Pass. This real-time dashboard provides a complete overview of all your credit accounts in one place and highlights credit factors including your upcoming payments.

Late payments hurt your credit score significantly because they indicate a higher risk to lenders. However, the opposite also holds true – a long track record of on-time payments signals responsibility. So, use payment reminders or whatever works best for you . Staying on top of bills diligently helps raise your score over time by demonstrating reliability.

3 Keep credit card balances low
Your credit utilisation ratio – how much of your total credit limit you currently have borrowed – directly impacts your CIBIL Score. As a rule of thumb, try to keep your credit card balances below 30% of your total credit limit across all cards.

Avoid unnecessary purchases and excessive spending sprees that inflate your owed amounts. Ask for credit limit increases to keep your utilisation low as needed. Only apply for a new card when a strategic benefit outweighs the temporary score dip from a hard credit check.

Keep in mind, you don't need to carry balances and pay interest charges to build your score. Using below 30% of your total credit and paying your bill on time and in full each month demonstrates responsible usage. Develop a system, whether checking balances weekly or setting personalised limits per card. The Credit Pass gives you t he ability to monitor credit factors, which allows you to keep a keen eye on your credit utilisation in real time.

With strategic management of your borrowing and repayments, you can leverage the power of credit cards to elevate your CIBIL Score over time. Their magic truly lies in minimising reliance on credit while handling what you do use prudently.

4. Be strategic with your credit accounts
When working on improving your CIBIL Score, resist the temptation to apply for numerous new credit cards or loans in a short timeframe. Each application triggers a hard enquiry on your report, which can temporarily ding your score a few points if too many accumulate. Apply for new credit only when you need it, or a compelling reward or benefit arises that aligns with your financial goals.

Similarly, avoid closing your oldest credit card accounts if possible. The average age of your credit history also impacts your score. Keeping long-standing accounts open demonstrates stability even if you don't actively use the cards. However, closing newer accounts with short tenure has a minimal effect.

Being selective with credit applications and keeping veteran accounts open where beneficial, prevents score fluctuations. Applying for financing too frequently hints at risk or overreliance on credit. Make the most of the credit factors tracking feature of your Credit Pass to keep a close eye on your recent enquiries. Leverage it to maintain your old credit accounts in good standing. Also, utilise the interactive Credit Score Simulator and EMI Calculator tool to make informed decisions when it comes to applying for fresh credit.

5 Regularly review and dispute any errors
Mistakes happen, even on credit reports. Errors like duplicated accounts, incorrectly reported late payments or outdated personal details can unjustly drag down your score. That's why a regular review of your credit report is essential. Having an accurate portrait of your financial history is vital for both credit health and security purposes. If you spot any discrepancies during your review, start gathering supporting documents and submitting disputes right away.

Think of report disputes as spring cleaning – it tidies up loose ends or slip-ups you may have missed. Even small fixes can lift your score once resolved. Staying on top of inquiries and ensuring all information reflects reality helps safeguard and optimise your CIBIL standing over time.

With a few moments of attention and vigilance, you can catch issues early and improve both accuracy and score simultaneously. Consistent monitoring and swift dispute resolution keep your credit report, and credit journey, smoothed out.
With these simple yet smart moves and your Bajaj Finserv Credit Pass subscription, a robust CIBIL Score is well within your reach.