How do I improve my credit score for better loan offers?
Accepted Answer ✓ Accepted
Comprehensive strategy to improve CIBIL score: Immediate actions (0-3 months): (1) Pay all EMIs and credit card bills on time - single most important factor (35% weightage); (2) Clear any overdue amounts immediately; (3) Keep credit utilization below 30% of limit; (4) Don't close old credit cards - length of credit history matters (15% weightage); (5) Check CIBIL report for errors at www.cibil.com and dispute inaccuracies. Medium-term (3-6 months): (6) Avoid multiple loan applications - too many inquiries hurt score (10% weightage); (7) Maintain diverse credit mix - credit cards + loans (10% weightage); (8) Pay more than minimum due on credit cards; (9) Convert large credit card dues to EMI. Long-term (6-12 months): (10) Build consistent payment history; (11) Reduce overall debt burden; (12) Increase credit limits (but don't use). Score can improve 50-100 points in 3-6 months with disciplined efforts. Monitor progress monthly.
Suggested Answers
Pay all your bills and EMIs on time every month, keep your credit card usage below 30% of the limit, don't apply for multiple loans at once, check your credit report for mistakes and get them fixed, and avoid closing old credit cards. Following these consistently can improve your score by 50-100 points in 3-6 months.
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