If you are struggling with credit woes and want to find a quick fix for your CIBIL scores, then understand this – there is no quick fix. Getting your CIBIL scores in order requires both discipline and educating yourself about the options available.

What is Considered a Good CIBIL Score?

CIBIL score is a 3-digit numerical expression that ranges from 300 and 900. The closer your score is to 900, the better is your CIBIL score. A CIBIL score of 750 is considered as ideal for getting a loan on favourable terms. If you have a score that’s less than ideal, you need to take measures to improve it.

1. Review Your CIBIL Report for Accuracy

   It’s extremely important to ensure that all information on your CIBIL report is accurate. A mistake or a discrepancy that’s reflecting on your CIBIL report can negatively impact your CIBIL score.

   If you notice any inaccurate information, outdated information or missing information, raise a dispute with the Transunion CIBIL and your lender. This is the closest you can get to a quick CIBIL fix.

   Remember: Pulling your own CIBIL report does not impact your CIBIL score.

2. Get a Mixed Bag of Credit

   You’ll want to establish a mix of credit types, with some short-term low-interest loans, a few credit cards, and a few secured long-term loans like car loans or home loans. This helps you build up your credit score and shows lenders that you can manage your finances responsibly. Taking too many unsecured loans might seem like a negative to the banks; therefore, maintaining a credit mix with both secured and unsecured loans becomes important.

3. Set up Payment Reminders to Pay Your Dues on Time

   Consistently paying your bills on time can raise your score within a few months. A single missed or late payment can have a significant negative impact on your credit score. To ensure that you pay your dues on time, write down payment deadlines for each bill in a planner or calendar and set up reminders online.

   You can also consider enrolling for auto payments through your lender or bank to have your payments directly debited from your bank account.

4. Fix Your Credit Utilization Ratio

   If your credit card account balances exceed 30% of your credit limits every month, it’s a red flag because your CIBIL score is suffering. Even if you are paying off your balances in full every month on the due date, it may reflect as outstanding in your credit report because your creditor reports the information to the credit bureau once a month and the date could be before your due date. So, it’s a good idea to consider pre-paying some of the balance before the due date to keep you above the 30% mark every month.

5. Convert Your High-Interest Debt into EMIs Through Debt Consolidation

   If you are having trouble making your payments because of the high-interest loan rates on credit card accounts and other loans, convert your multiple debts into EMIs by paying it off using a low-interest personal loan through debt consolidation. You can then choose your repayment schedule according to your financial capability and pay back the borrowed amount through affordable EMIs. The advantage of taking a personal loan to pay off your existing debt is the interest rate; it’s nearly half of credit card interest rates.

6. Pay More Than Once in a Billing Cycle

   Making payments once in a month is good but not great for your CIBIL Score. Your creditors report balances to the credit bureaus every month. If you have big balances, it could mean that you are overusing your credit.

   If you enjoy good financial standing, the best thing you could do is pay more than one monthly payment. It definitely reduces your debt faster; it also reduces your credit utilization ratio and improves your CIBIL Score.