How To Improve Your Credit Rating Score in India?

How to Improve Your Credit Rating Score in India?

Credit Score in India is a new concept. The only credit rating agency in India right now is CIBIL – Credit Information Bureau (India) Limited.

CIBIL was promoted first time by SBI (State Bank of India) and now it is owned by several banks of India.

If you are an avid credit card user than beware. This is because your credit card defaults and other payment history is being recorded by the CIBIL and a bad damage score affects you in the future when you go to any bank for home loans, car loans and personal loans.

The Credit rating score is a number between 300-900.

Here are few Tips to Increase your Credit Rating in India

1. Timely do the Credit Card Payments

2. No Skipped Payments

3. Making your payments on time will have the most significant impact on your credit record. It is important for you to maintain appropriate, reasonable and affordable levels of credit and ensure regular and timely re-payment of loans.

4. Keep your total debt under control. If your total borrowings are significantly high, use some of your savings to repay some of your debt.

5. When you are seeking for a new loan or credit card, do it in a relatively short amount of time. You don't want to have your report show that you are constantly looking for credit!

6. Keep a self imposed credit limit, which is much lower than the actual credit limit – Never use more than 40% of your credit limit. This will make a good impression on your bankers and improves your credit score.

7. Paying off credit card dues quickly will dramatically improve your credit score