To improve your credit score quickly, be careful not to take multiple credit cards or loans simultaneously.
Your credit or CIBIL score is a measure of your creditworthiness and solvency. This score or rating acts as a yardstick for future loan approval, especially when you are in a position to take a personal loan. In such a situation, before applying for personal finance or any other type of loan, definitely check the credit score and improve it. If you want, you can improve it to a great extent within 30 days. For this you will have to take some steps. Come, let us discuss these things here.
Do not delay any other bill payment
The first way to improve your credit score quickly is to not delay any more bill payments. Be it a credit card, loan EMI or any other bill, pay it by the due date. It would be even better if you make the payment in advance i.e. even before the fixed deadline. You can get more benefit from this. According to Tata Capital, this will make you eligible for a higher credit limit, which in turn will increase your credit score.
take a credit card
If you don’t have any credit history, it means you are new. No credit history means no high/low credit score. This may seem like a good thing initially, but when it comes time to take any kind of loan, it can lead to problems. Having a credit history is not a bad thing. In fact, it acts like a report card of your credit worthiness and allows future lenders to trust you with higher loan amounts at lower interest rates. So, have a credit card, whether you use it or not. This is often a way to get an interest free loan for up to 45 days anyway. Allows you, firstly, to get a credit score and, secondly, to improve it.
Reduce Credit Utilization Ratio
This expert tip to improve credit score in 30 days also works for people who have a relatively high score and want to make sure it stays that way, even if they delay a bill payment or two . One of the hidden secrets to improving credit score in 30 days is to keep your credit utilization below 30%. Suppose your credit limit is Rs 1 lakh, and you want to increase it quickly. Don’t spend more than Rs 30,000 on your card, just until your credit score goes up. By doing this, not only will your CIBIL score or credit score increase rapidly, but you will also pay your bills on time and practice financial discipline.
Request to increase credit card limit
Once you’ve managed to keep your credit utilization at or above 30%, take your second step, which is to request a higher credit limit. According to Tata Capital, getting approved for a higher credit card limit shows you as a responsible user, which is a great way to improve credit score fast. If you’re paying your bills on time and keeping your utilization below 30%, most lenders will happily increase your credit limit. Some issuers also allow you to increase your credit limit online.
Choose a cash-backed credit card
Choosing a cash-backed credit card is a wise decision. You can do this by depositing a lump sum amount that is equal to or slightly less than your credit limit. It offers a bulletproof guarantee of repayment, which is a great way to improve credit score fast. Choosing a secured credit card is also a great way to get a credit card for first-time users who have no credit history and hence, cannot get a credit card quickly.
Don’t take out multiple credit cards or loans
To improve your credit score quickly, be careful not to take multiple credit cards or loans simultaneously. Lenders consider borrowers with multiple obligations to be low on credit, which may hinder their potential repayment ability. If a borrower fails to repay several loans on time, it can negatively impact their credit score. Therefore, avoid taking multiple credit cards or loans at one time or maintain a time gap between different loans. This will help in improving their credit score.
Track Credit Report
The credit score is part of a comprehensive credit report issued by India’s four authorized credit bureaus – CIBIL, Equifax, Highmark™ and Experian. Regular tracking of credit reports will let the concerned bureau or authority know about any discrepancy or error. Getting it fixed immediately is another way to improve credit score in 30 days.
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