GromoLogo
  • Download
  • appStoreIcon
  • appStoreIcon
  • 5 Ways To Improve Your CIBIL Score : GroMo

    5 Ways To Improve Your CIBIL Score GroMo

    5 Ways To Improve Your CIBIL Score : GroMo

    CIBIL score is a three-digit number that ranges from 300 to 900 and is considered good when it is close to 900. Similarly, it is bad when it is close to 300 and decreases your chances of getting approval for a loan or a credit card. This three-digit number represents your creditworthiness. It is checked by banks and financial institutions whenever you apply for a loan or a credit card. It is advisable to check your CIBIL score regularly to avoid any discrepancies.

    CIBIL score is generated by a credit rating agency by the name of TransUnion CIBIL. TransUnion CIBIL is the number one credit score rating agency and the only rating agency that counts while seeking finance. You can check CIBIL score free online and track your credit report to avoid any discrepancies.

    Importance Of CIBIL Score

    CIBIL score plays an important role in determining the fate of your loan or credit card application. Having a low CIBIL score can land you in trouble at the same time. However, there are numerous benefits that come along with a high CIBIL score. From having low-interest rates to quick loan approvals. You can take advantage of multiple benefits by having a high credit score.

    CIBIL is an important aspect of getting credit as banks and financial institutions check your CIBIL score as soon as they receive your loan or credit card applications. Having a CIBIL score of more than 750 is considered good for loan or credit card approvals. You can keep an eye on your credit history and take the necessary steps to improve your CIBIL score.

    5 Ways To Build Up Your CIBIL Score

    Taking care of your repayment habits can help in improving your credit health and therefore, your CIBIL score. Having a good CIBIL score can make the loan approval process hassle-free and also comes with numerous benefits. Moreover, having a low CIBIL score does not mean that you would not get loan approvals. Since you can always build up your CIBIL score before applying for any loan or credit card.

    However, it is important to understand that your CIBIL score cannot improve overnight and it takes time to build a credit history in order to have a high CIBIL score. It requires a lot of time and patience to build a high CIBIL score. On the bright side, you can improve your CIBIL score irrespective of how low it is. But, the lower your score is, the more time it will take to build up your CIBIL score.

    Here are a few steps that you can consider to improve your CIBIL score:

    Making On-Time Repayments

    Having a credit card and exhausting your credit limit is a common practice in today’s time. Credit cards can offer you the convenience to buy anything from anywhere at any time. With such injudicious spending's, your bills will rise beyond your ability to repay the credit card bill. These can result in delays in making credit card repayments which can result in having a lower CIBIL score.

    Not only is it a major factor in having a low CIBIL score, but it also adds up to a hefty amount of late payment charges to your credit card bill. Having a high bill amount to repay within a specific time can be challenging. Therefore, it is advisable to only spend using your credit card within your repaying capacity. You can change your buying patterns and can control your expenses to stay within the repaying capacity.

    It is advisable to not use your credit card for a period of 3-4 months, if possible to avoid hefty credit card bills and create savings to repay your bills. Maintaining this healthy repaying practice can help you to improve your CIBIL score.

    Pay Your Dues Completely

    Credit card companies offer to pay the minimum dues at the time of bill generation. Minimum dues are calculated at 5% of the outstanding balance in a particular billing cycle. Paying the minimum dues can save you from late payment charges but the interest will be added to your next bill. Also, not paying your credit card bill in full and only paying the minimum amount for longer periods can also have a negative impact on your CIBIL score. As a result, your CIBIL score might take a hit.

    Therefore, it is important to understand that paying your credit card dues completely can help you in maintaining healthy credit health and thus, a high CIBIL score. Also, you’ll be able to avoid the interest and taxes that are being added to your next credit card billing cycle. Paying credit card dues in full can steadily improve your score and reflect a higher number when you next conduct a free CIBIL score check.

    Never Exhaust Your Credit Limit

    Maximising your credit card usage can make you look credit hungry to the credit bureau and can lower your CIBIL score. Maintaining a healthy credit utilisation ratio can help in having a healthy credit lifecycle. The credit utilisation ratio refers to the amount that is being used on your credit card with respect to the limit of your credit card.

    Having a high credit utilization ratio can lower your CIBIL score and vice versa. GroMo advises you to keep your credit utilisation ratio below 50% of your entire credit card limit to boost your CIBIL score.

    Do Not Withdraw Cash On Your Credit Card

    Using your credit card in an ATM to withdraw cash can be the worst decision that you make if you are trying to build up your CIBIL score. Credit card companies offer cash advance limits to lure you into their credit traps. However, withdrawing cash from an ATM using your credit card can attract a huge amount of interest. You will have to repay this interest in your monthly billing cycle. Also, the interest will start from the day you withdraw cash using your credit card.

    Unlike retail purchases, where the cardholder receives a 20-25 days interest-free window to repay the amount spent. Withdrawing cash on your credit card can increase your credit card bill and can result in a huge fall in your CIBIL score. Therefore, it is advisable to never withdraw cash on your credit card if you are trying to build up your CIBIL score.

    Avoid Frequent Enquiries & Check Your Credit Report

    You can conduct a CIBIL score free search online to get your score and report. However, there are chances that your CIBIL score might take a hit if you enquire about your CIBIL score too often. Enquiring about your credit score very often will make you look credit hungry and would look like you are trying to desperately apply for a loan.

    Also, there are chances that your CIBIL score can be low because of any discrepancies or errors in your credit report. Therefore, it is important to carry out a CIBIL score check online. Also to keep an eye on your credit report to avoid any such errors that can lower your CIBIL score.

    Conclusion

    These are some of the proven ways that can help you in building up your CIBIL score. Moreover, having a high CIBIL score can bring a lot of advantages and can make it hassle-free to apply for a loan or credit card. Also, you can check the official GroMo website to learn about how to check CIBIL score and more such financial facts.

    To gain more knowledge about CIBIL score login or to know how to carry out a CIBIL score check free online by PAN Number, you can check out the GroMo Academy. GroMo is one of the leading mobile apps in the country. You can download and sell financial products to potential customers to earn money using this app. Just download the GroMo app and become a GroMo Partner to start earning today.

    FAQ

    How do you Increase CIBIL score very fast?

    Paying your dues on time and maintaining healthy credit habits can help you in improving your CIBIL score. However, it is important to understand that improving your CIBIL score is not an overnight process and takes time and patience to gradually build up your CIBIL score.

    Is a 750 CIBIL score good?

    A CIBIL score of 750 and above is considered good and can increase your chances of getting loan approvals instantly. However, you can still improve your CIBIL score and avail of multiple benefits.

    How to improve CIBIL score without Credit Card?

    Avoid defaulting on any new loans and make timely repayments for your existing ones. Also, avoid closing your old bank accounts to improve your CIBIL score without a credit card.

    How to improve CIBIL score after loan settlement?

    Convert your account status from settled to closed and clear any outstanding dues. Also, get a secured credit card and keep the credit utilisation ratio under 50%. Pay your card dues on time to improve your CIBIL score after loan settlement.

    Is 550 a good CIBIL score?

    A CIBIL score of 550 is usually considered low and insufficient to be eligible for personal loans in most banks and financial institutions. You can take the necessary steps and improve your CIBIL score over time to apply for loans and get approvals.

    share

    item0
    item1
    item2

    Tags :-

    credit cards

    Credit Score

    fintech

    Related Blogs

    see more blogs
    logo
    Sell financial products & earn ₹1 Lakh/month

    Products

    Credit Card

    Savings Account

    Demat Account

    Loan

    Line of Credit

    Investment

    Sell Insurance

    Contact Us

    +91 1246933315

    contact@gromo.in


    © 2022 GroMo. All rights reserved.

    About GroMo

    Do you want to earn money online without investment? Download GroMo to earn extra income from home today!

    What is GroMo ?

    GroMo is the best money-earning app that will help you in starting a business without any investment. Become a GroMo partner by downloading the GroMo app from Play Store and sell financial products from different brands to customers and earn over ₹1,00,000 every month.

    You can attend free training, learn how to sell financial products to customers and start earning.

    Who can become a GroMo Partner ?

    You can be a working professional, a businessman, a student or a housewife - our app is a one-stop solution for anybody looking to learn and earn money by selling financial products. Other than your primary source of income, you can easily earn extra money from home by joining GroMo.

    GroMo is one of the best side income sources where you can engage customers by sharing content with them and getting the financial product activated.

    What are the benefits of working with GroMo?

    1 Zero Investment business : Start your own business with 0 investment

    2 Work from homes : Get one of the best at-home job opportunities

    3 Quick payout : Shortest payout cycle in the market

    4 Side income source : One of the best extra income sources

    5 Great customer service : Grow your business with help from our customer support team

    What financial brands can you sell ?

    You can start your online business @0 investment with us today. Sell insurance and financial products from next-gen brands like Axis bank, Kotak 811 bank, Upstox, Paytm Money, Freecharge, Bajaj Finserv, etc. and earn extra income online without investment.

    You can sell financial products from the following brand categories:

    • Savings accounts
    • Insurance
    • Credit cards
    • Demat accounts
    • Credit accounts
    • Loan
    • Investments

    ...and many other fantastic financial products with our at-home money earning business. Like what we do? Great, there's more!

    What are the features of GroMo ?

    GroMo is a great platform to sell financial products. Trust us, you won't find a better way to earn extra online without investment. Your customers will be happy to get access to multiple financial products with you and you will be happy to earn more income from home, all in one app.

    You can even build a team through referrals and boost your earning with our app to make money. Here's is a list of GroMo features you would love:

    1 Get educated: Upskill with our free online courses and webinars and become a certified financial advisor while still doing home based work.

    2 Manage customers: Manage your customers and track their status in your GroMo App. Moreover, you can set up reminders to follow up with your customers.

    3 Engage your customers: Keep your audience engaged with personalized content, website and visiting cards to sell financial products.

    4 Refer and earn: Take full advantage of our fantastic referral policy and refer people in your network to GroMo on a regular basis.

    5 Track your earnings: Use your in-app wallet to keep track of your earnings and transfer money to your bank account.

    6 Data security: Securely maintain customer data in your financial app without worrying about any data safety issues.

    Get ready to eam money without investment with GroMo. Download our financial app todayGoogle Play StoreandApp Storeand start your job from home.