Whether taking a loan or a credit card, it is very important to have a correct CIBIL score. Many people are confused about CIBIL scores and credit scores.
Let us tell you that both are the same. If the CIBIL score is not correct then many problems arise. Once the CIBIL score gets spoiled then it becomes very difficult to correct it.
Let us tell you that when the CIBIL score goes below 500 then it is considered bad. In such a situation, experts also advise that you should always try to keep your credit score above 500 points. Today we will tell you some ways with the help of which you can improve your bad credit score.
Get a Secured Credit Card
Whether the CIBIL score will be above 500 or below also depends on the credit card. In such a situation, you should take a secured credit card to increase your CIBIL score. For a Secured Credit Card, you have to get FD made in the bank.
In this, the credit limit is decided according to the value of your FD. In this way, you can correct your CIBIL score through a secured credit card.
Become an authorized user
If anyone in your family has a good credit score, then you can become an authorized user of his credit card. After becoming an authorized user, your credit score will increase.
Credit builder loan
If your CIBIL score gets damaged, you can take a Credit Builder Loan to correct it. This is a kind of loan. In this, the loan amount is less.
You can keep the amount received in the loan in a savings account and after repaying the loan on time, its information is given to the Credit Bureau. Making loan payments on time can also improve your credit score.
Use credit cards less
To correct or increase credit score, we should minimize credit utilization. If possible, try to use only 20 percent of the credit limit. This way your credit score will always remain good.
Check your credit report regularly
You should check the credit report every month. You can see in this report which of your loans is in progress. If you get a loan that you have not taken then you can also report against it.
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