i asked for a loan but due to my bad credit scores bankers reject the approval for loan. now what should i do and how to improve my credit history. Is there is any way to improve or not ?
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i asked for a loan but due to my bad credit scores bankers reject the approval for loan. now what should i do and how to improve my credit history. Is there is any way to improve or not ?
Yes, it can be improved but keep distance from the various fake sites coming up in google as CIBIL score advisor or helper. You don't need them. Just check your CIBIL score directly on CIBIL website https://www.cibil.com/creditscore/cibilscore-form-ggcs and find out how much it is and where you defaulted which resulted in low score.
If you know last time you failed to make credit card payment, bank loan payment etc. then clear it and ask bank or institution to send report of settlement to CIBIL asap. Also try to secure small loans and pay them in time. Just don't default on any kind of financial transaction for next few months (probably 6 months or more) and your credit score should improve.
Just to remind once again, do not fall pray to those online credit score helper or advisory websites.
The good thing is that it's possible to enhance your score – you ought to stop fretting about the problem and start to take concrete steps right away to enhance your score.
A CIBIL that is poor score boost your financial problems and also make it hard to access credit, whether as a loan or credit card. The good news is that it is possible to boost your score – you ought to stop worrying all about the issue and commence to take concrete steps right away to boost your score.
Here are a few tips which will have an impact that is positive your score:
Obtain your credit report and check for errors: While you might think you have got an excellent credit history, there might be certain reporting errors which can be unnecessarily dragging your score down. For example, it might still be shown as current due to an administrative error if you have paid off your loan in full and closed the account. By correcting these errors, you're able to put an immediate stop to a negative effect on your score.
Similarly, additionally, it is useful to search for any suspicious activity (e.g. a loan that you definitely have not taken) that could be fraud. Filing a dispute with all the bureau and making sure it really is resolved may also have an instantaneous positive impact on your score.
Usually, do not delay or miss any payments: Your repayment behavior is a very factor that is important calculating your credit rating. Your history of loan and credit card payments can make up almost 1 / 3 of your score. Even a single late payment can adversely affect your CIBIL score. Lots of people pay their bills late or skip a payment completely. You will see an immediate effect on your credit score if you start paying all your bills on time and in full.
You need to make an effort to create your payments must certainly be made at least 5 working days before the date that is due. If you're about to result in the payment by cheque, you need to be certain that you create the payment 10 days before the due date.
Limit your utilization of borrowing limit: One of the easiest methods to improve your credit rating is always to avoid utilizing your credit card to its full limit. Restrict your monthly credit card bill never to significantly more than 50% of your limit. E.g. when you have a credit limit of Rs. 1,00,000 per month, make certain you try not to exceed monthly expenses of Rs. 50,000. Using in excess of 50% of the card limit signifies that you may have problems with spending discipline and that you do not manage to keep aside adequate to repay your financial troubles obligations. This causes your score to drop.
Avoid multiple loan/ bank card applications in a short span of the time: it is not looked at very positively if you have too many inquiries in a short span of time. Imagine which you have made a credit card inquiry, a personal loan inquiry, and a home loan inquiry within months - so what does it seem like to a lender? It demonstrates that you may be credit looking and hungry for multiple resources of credit. One way it is possible to prevent a drop in your score is always to avoid making several new applications for credit within a short time frame.
On average, it takes 4-12 months to repair your credit score, based on your own situation. All that's necessary is some patience, commitment, and self-discipline and you'll attain your credit goal.