Getting a good credit score is easy for people who have never missed a payment and have always paid back the full amount of their loans. Not everyone is like that, though. Some people find it hard to pay back their loans when inflation and unemployment rates are high. Result? Their credit score goes down in the long run. It’s important to know how to raise your credit score because a high score makes it easier for you to get any kind of loan in the future if you need one. Lenders are more likely to give loans to people whose sbi home loan cibil score is above 750.
Getting a better payment record: The best way to raise your credit score is to always pay back your loans on time. So, your payment history will get better, which will help your credit score go up in the long run. You might not think so, but if you miss even one payment on a credit card or loan, your credit score will drop by a lot, even below the minimum cibil score for home loan. Credit rating agencies get information about your credit history from banks and other financial institutions. Even if you miss one of your EMI payments on a loan, your CIBIL score will go down. Do you know that a 30-day late payment can drop your score by 100 points, according to CIBIL? So, your main goal should be to improve your credit score by making your loan payments on time.
Lower your credit utilisation ratio. Did you know that your credit score is affected by your credit utilisation ratio? The better your credit score will be, the less you use your credit. It is best to use less than 30% of the total amount of credit you can get. If you use more than this amount, it will be seen as a sign that you are very dependent on it, which makes you the most likely person not to pay back what you owe.
Checking your credit report often: Keeping an eye on your credit report is an important part of building and keeping your credit score over the minimum cibil score for home loan
mark. Do you know that if your credit report has incorrect personal information, you should report it right away to the credit bureaus by filing a dispute? To avoid having your identity stolen, you should make sure that your credit report is free of mistakes.
Don’t try to get more than one credit: Do you know that if you apply for a lot of credit at once, the lender will see you as someone who wants credit badly? And credit bureaus will notice right away that you want more credit, which will lower your sbi home loan cibil score even more. Even NBFCs and banks have doubts about giving this person a loan. So, you shouldn’t apply for more than one credit product at the same time.
Don’t have too much-unsecured debt: Did you know that if you have too much credit card or personal loan debt that isn’t secured, it can hurt your score can pull it to or below the minimum cibil score for home loan level? Instead of using your credit card to pay for an emergency, you should try to get a secured loan by putting up an asset as collateral. Your goal should be to keep a healthy mix of secured and unsecured debts in your portfolio. If you take on too much credit, banks and other financial institutions will see that as a red flag and might not give you a loan. A borrower can avoid this by getting a secured loan or an unsecured loan.
Make sure you keep your older credit cards to lengthen your credit history. As long as you can pay your bills in full, you should keep your old credit cards. This will help you build a strong and long credit history in the future, which will help you get and keep a good sbi home loan cibil score.
Check if you are co-signed, guaranteed, and joint accounts- If you took out a loan with someone else who has more than the minimum cibil score for home loan, you should also check you are co-signed, guaranteed, and joint accounts. If they miss one payment, you will still be responsible for all of the payments they didn’t make. You should know that the negligence of your guaranteed individual and joint holder could make it harder for you to get credit when you need it.
In no way should you pay off your loans and credit cards: You should know that paying off a credit card or loan doesn’t help a person’s CIBIL score. In this deal, the person who owes money goes to their bank and asks for a deal that will let them pay off the debt for less than what is owed. When the settlement is over, it leaves a mark on the credit report, which hurts the score in the long run.
Be patient and keep at it. Many people want to increase their credit score quickly, but you should know that it doesn’t happen overnight, and it takes time to build a credit report. For people who haven’t always paid their bills on time, getting a good CIBIL score is hard, but it is possible with planning and self-control. So, you need to be patient and keep an eye on your credit report and spending habits to make sure you pay your debts on time. Over time, it will help to raise your credit score and show that you can be trusted with money.
Remember that if you want to know how to increase your credit score quickly and improve your sbi home loan cibil score, you’ll need time, patience, and the right approach. It’s important to remember that the amount of damage done to your credit score will also affect how long it takes to fix it. But the time it takes to rebuild your credit score can vary from person to person and case to case, especially if the score is equal to or even lower than the minimum cibil score for home loan mark.
