Tips to Boost Falling CIBIL Score on Card Payment Default

Debt Consolidation

When it comes to CIBIL score, it takes a lot of time as well as patience to create a good one. It is a measure of your creditworthiness, thus it is important to maintain a good CIBIL score of 750 or above out of 900. But, because of credit card debt, is your CIBIL score going down? If that is the case with you, nothing to worry at all. Well, you must be wondering what to do next so that your CIBIL will increase? Nothing to worry, read this article further to know about the best ways that will help in improving your bad CIBIL score.

Make Timely Payments
Yes, with the help of making timely payments it is easy for you to improve your CIBIL. Try to pay all your debts and pending bills on time so that you will never get into the trap of debt. If you pay all your dues right on time, it will help in improving your payment history/credit history. However, if you find it difficult, nothing to worry as you can set a reminder on your phone for that. So, through this way, it is easy for you to make the timely payments.

Keep an Eye on Your Credit Card Balance
Your Credit Card plays an immensely important role in the determination of your CIBIL score. While using a credit card can boost your Cibil score big time, keeping a few things in mind can help you go a long way. it is always a better option to not overuse your credit limit as that depicts your irresponsible behavior towards your finances. Abstain from using more than 30% of your credit limit unless it is a case of sheer emergency. Try to maintain a healthy proportion between the limit of your credit card and your usage so as to keep your CIBIL score sturdy.

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Apply for Credit Only When You Need
Credit Card applications must be strictly based on your need. Keeping a credit card to boost your credit history is a good idea. But what comes along with that is a huge responsibility to utilize the card wisely. Refrain from indulging in default behavior and activities as that would make your CIBIL score suffer. Hence, apply for the credit card after much consideration and thought.

Spend Within Your Income
Many people begin to take their credit card limits for granted. They make it a habit of spending more than their repayment capacity and regretting later. Try to avoid this habit as this forms a vicious circle of overspending leading to regular defaults which eventually brings down your CIBIL score. Try to maintain a healthy ratio between your earning and expenditure so as to maintain a healthy and sturdy CIBIL score.

Minimize Your Credit Enquiries
Credit inquiries play a vital role in the determination of CIBIL score. Try to abstain from credit inquiries occurring on a regular interval as that might bring your profile in a negative light. The frequent occurrence of credit inquiry can impact your CIBIL score negatively.

Improve Your Payment Patterns
The payment pattern of an individual plays an important role in the determination of CIBIL score. It is highly recommended to be prompt and punctual with the repayment schedule of all your debts so as to prove your responsible financial behavior. The best way to ensure timely repayments is to opt for automatic deductions every month. This practice will not only ensure punctual repayments without missing out on the due date but would also let you avoid the stress associated with it.

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Keep Track Regularly
Keep a track of your CIBIL score on a regular basis. The best way to ensure a sturdy CIBIL score is to be consistent with activities and practices that prove your financial responsibility. It is of vital importance to keep an eye on your CIBIL score so that appropriate measures can be taken at the right time to make any improvements.

Try to stick to the above mentioned tricks as much as you can to enjoy the privileges of the CIBIL 750+ Club.