People with a poor credit or CIBIL score may only get an approval for a credit card or any other financial products that require good credit score when the credit score improves to a satisfactory level for banks. In such a case, enhancing the credit score becomes vital and yet it cannot be done in haste. It takes a minimum of 12 to 18 months to enhance one’s credit score and get to a number that gives confidence to the financial institution you are about to apply for a loan or a new credit card. Also, it is important to note that the quantum of damage on your credit score also acts as a factor for how long it will take to improve your credit score. Often banks and financial companies have a different CIBIL score bracket for various products.
Tips to efficiently Enhance Credit Score
Here are some things an individual can do for damage control on credit score:
- It goes without saying that one needs to pay their due bills before the due date. But this also means that you need to pay your credit card and other payments before time and not just a day before. This is of course if you want to enhance your credit score.
- If you have loans standing with high interest rates then clear them early or to reduce your interest rate, else high interest rates will further affect your CIBIL score. It is always a good idea to opt for secured and unsecured loans hence.
- Use the plastic card but a different one, the debit kind. It is essential to start knowing how much money you can actually spend and debit cards help you to enhance your CIBIL score and avoid credit debt at the same time. Use our debit cards at least for a few years, unless absolutely necessary to use your credit card.
- When you enquire about other credit cards, it affects your credit score for the worse. Hence, avoid it as much as possible. If you really want to research about a credit card, it is best to do it online where you can surf all about a particular credit card as much as you want without actually communicating directly with the credit card company.
- Balance and prioritizing things that you need to purchase and want to purchase. Keep to the list that you need to purchase and reduce the number things in it as much a possible.
- Make sure that your never reach your credit limit and instead keep a buffer limit. It is best if you are able to save some money in your account to show higher savings over time, for improving your credit score.
- Do not borrow more to pay for loans and bills unless absolutely necessary.
Nobody can hence accurately predict the time required to enhance an individual’s credit score. Credit improvement is however not too difficult if the effort is consistent over a long period of time. The main deal with improving credit score is taking care of the factors that affect your credit score.
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