How to Improve your CIBIL TransUnion Score 2.0?

You need to have a high CIBIL score to get a good deal on the interest on the loan. Here are some of the measures you can take to improve your CIBIL score and bring it closer to 900.

1. Work on your late payments

You should pay all your bills on time and never delay your bills or EMIs. Late payment of credit card bill takes a huge toll on your CIBIL score. Your repayment behaviour accounts for 35% of your CIBIL score. One single late payment can reduce your CIBIL score by 80-100 points.

2. Low credit utilisation is crucial

It is advised to use only up to 30% of your credit card limit. Using your credit card limit to the fullest can affect your CIBIL score and will also make you look credit hungry. Make sure to avoid maxing out credit cards every month as it will make you look credit hungry. 

3. Don’t close old credit cards 

In order to have a high CIBIL score, it is better to have a long credit history. If you close your old credit cards, you end up losing a good credit history and repayment behaviour. Therefore, it is better to keep your old credit cards open and make use of long credit history. 

4. Pay off outstanding debts 

Any pending bills or debts should be paid off at the earliest. Having unpaid dues will hamper your CIBIL score. Pay your outstanding dues to improve your CIBIL score. 

5. Avoid multiple credit inquiries 

It is advised to spread your credit inquiries throughout the year instead of all at one time. Too many hard inquiries can bring your CIBIL score down. Make sure to inquire about credit only when you need it. 

6. Monitor CIBIL report 

It is important to monitor your CIBIL report as it may have errors that can affect your CIBIL score. Also, you could be a victim of an identity theft which can hamper your CIBIL score. 

It must be noted that it takes patience to improve your CIBIL score and it cannot happen overnight. You have to be disciplined and consistent with your repayments.