Did you know that there is only one thing worse than a bad Credit Score? Yes, it is doing absolutely nothing about it. 

No matter if you want to avail a personal loan or not, fixing a bad CIBIL Score should be on your mind. Why? It is because you may never know when you may require credit. And for that, you need to be prepared well in advance so that you can quickly avail of the loan facility to fund your needs. 

Why don’t you go through this article and know significant steps to help you repair your CIBIL Score in 2019 and later? Read on!

  1. Ensure to make payments on time, every time

Nothing keeps your CIBIL Score in poor shape than a shaky loan repayment history. Paying only the minimum amount on loan and a credit card may also tempt you. But, temptations may be bad in the long-run and may hurt your CIBIL Score. Hence, when you have a bigger loan in mind, then your focus should be on making full payments, always. It will keep your CIBIL Score in shape and help get the loan sanctioning faster and at a lower rate of interest. 

2. Try to reduce your number of loans and credit cards

Many people avail too many loans and apply for many credit cards at once. It is bad. Lenders may assume that you are credit hungry and maybe utilizing the funds for illegal activities. It may affect your CIBIL Score negatively and may hurt your chances of future loan approvals. The fewer credit cards and loans you have, the more favourable you will become for lenders to sanction loans super quick. 

3. Keep a check on your credit utilization 

Don’t use your credit card limit more than 30-40% unless it’s an emergency. Using more only makes your profile appear bad in front of lenders. It is because they may assume that you are relying on credits to make ends meet and don’t have your own funds. It may hurt your CIBIL Score and also hamper the chances of approval of future loans. Even if you have to use the higher credit limit, ensure to fund your credit cards sooner than before. 

4. Set up auto-debit facility for payments 

We all are humans and prone to forgetfulness. However, you don’t have to let you CIBIL Score suffer because of this. Yes, you can miss making a payment leading to penalties and defaults, which may hurt your Credit Score. Hence, the best thing about it is setting up an auto-debit facility so that you never miss a payment and make your CIBIL Score prone to being down. 

5. Think twice before becoming a guarantor

Unless you know the person very well, don’t become a loan guarantor for any other. It is because the other person may not be repaying the EMIs on time, which may also be affecting your Credit Score along with his. 

6. Stop making too many enquiries at a time 

Lenders don’t prefer individuals who made too many enquiries in a short time. When you apply for too many loans at a time, lenders pull your CIBIL Score one after another. In turn, it brings down your Credit Score quickly. Thus, always apply for one loan at a time. Once a lender has rejected or accepted your application, then only take the next course of action. 

Be sure to follow the discussed points if you want to seek loans and want to improve your CIBIL Score

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