Your CIBIL score is a three-digit number that summarises your credit history in its entirety. The score ranges from 300 to 900, where a score of above 750 makes you a worthy contender when it comes to financial matters. The higher your score, the more financially responsible loan providers consider you to be. It shows them that you are capable of repaying a loan in a timely manner.
When it comes to taking an unsecured loan like a personal loan, your CIBIL score is even more important. It builds credibility and trust in you from the lender’s point of view. This is not to say that you can’t get a personal loan with a low CIBIL score. Lenders may still approve your application, but may charge you higher interest, since you will be considered a higher credit risk. To know your credit rating, visit the Bajaj Finserv website and enter your basic details to check your CIBIL score for free. To know your credit rating, visit the Bajaj Finserv website and enter your basic details to check CIBIL score for free.
So, to get fast approval and a nominal interest on your personal loan, here are ways in which you can rectify your CIBIL score.
Make timely EMI payments
Delayed, untimely EMI payments harm your CIBIL score. The same goes for missing EMI payment deadlines. So, maintain a list of EMI deadlines and set reminders so that you stay on track. You can set up an auto-deduction with your bank or maintain a separate cash reserve for EMI payments. This way, you won’t miss a deadline or find that you don’t have the necessary funds, both of which can affect your credit score.
Additional Read: Check your CIBIL credit score with these easy steps
Clear debts as soon as possible
If you carry outstanding debt over a period of time, it begins to reflect negatively on your credit score. So, instead of letting the debt lie unpaid, try clearing it as soon as possible by using a bonus or earnings from an investment. Swift repayment will give your credit score a boost.
Build a steady income portfolio
Having a secure job assures you of having the necessary means to make EMI payments through the tenor. This will boost your credit score. Apart from this, look at creating other sources of income via investments and/or income from a rental property. This can be diverted towards paying off debts.
File your taxes on time
If you are a regular taxpayer, this will add to your credit score too. Accounting for your income and expenditure against your savings and assets will increase your worth in the eyes of a lender. So ensure that you file your taxes on time and declare all the information that you are legally obligated to. Once you do this regularly, your credit score will reflect this in a positive manner. This is especially important if you are taking a loan of any kind. You might have to submit your tax receipts for the past few years while filing documentation.
Since personal loans are an easy and speedy way to access funds for varied needs, pay attention to your CIBIL score. Once you check your CIBIL score, and boost your score if it is low, take an instant personal loan from Bajaj Finserv. Here you can enjoy a flexible tenor, collateral-free access to funds, easy eligibility and flexible prepayment.
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