Want to build your credit score after Loan Settlement?

We can help! Learn more about our credit score builder service

Are you asking yourself the question how to improve your CIBIL score after loan settlement?

Here are some details of our credit score builder service and suggestions on how to improve your credit score and keep it high.

How does credit score builder work?

Improving credit score is not an overnight task. As part of the process, we will assign a senior credit counsellor who will handhold you over 3-6 months or longer if required, to help you to take the right decisions and implement activities that will improve your score over time.

Our credit score builder service includes the following:

Credit Score tracking and reporting
Monthly tracking of your credit score and detailed report
Credit score improvement analysis
Identification of improvement opportunities
Credit score improvement tips
Advice on how to improve credit score
Monthly analysis of financial transactions
Monthly review of financial decisions and steps taken
Communication with banks or lenders
Coordination with banks/ lenders if necessary
Tracking of CIBIL score
Follow up with credit bureaus like CIBIL where required

Tips on how to improve your credit score:

Keep your accounts active

You can use your credit card, overdraft or any other loan just to make sure that the account is in good health and there are no missed payments. If you do not want to use your loans then opening new accounts with the same lender will also help in improving your credit score. It's very important to make sure that your credit history is updated. If you are looking for ways to improve your credit score then it's very important that you have all the correct information in your file.

Watch your score carefully and fix all errors

This will not only help in increasing your credit score but also help you to stay on the safe side of it. At times, even one creditor mistake could lead to a huge damage to your credit report; therefore ensure that there are no mistakes which can affect your score. Once all the mistakes have been fixed, you can ask CIBIL to update your score.

In case of any dispute, contact your creditor immediately. If there is a query on your credit report then do not wait too long because it can decrease your credit score badly. Therefore, you must take quick action and get in touch with your creditor to resolve the issues as soon as possible.

Maintain a healthy mix of secured and unsecured credit

If you have a low credit score and need to borrow money, it's best to ask for a loan that is unsecured. This will help in improving your credit score gradually as time goes by because you will start building it. Relying only on secured loans will improve your credit score more slowly.

Unsecured credit includes credit card loans and personal loans while secured credit covers loans that have a collateral like home loan, car loan, gold loan etc.

Consolidate multiple loan accounts

In case you have more than one account then try to consolidate it into a single loan. This will also help you to reduce the number of loan accounts, which will eventually increase your credit score.

A debt consolidation can assist you in lowering your monthly payment and improving your credit, but only if you follow through on your repayment plan. If you have credit card debt that charges 40% or more in interest, consolidating into a new credit card or loan with a lower interest rate will save you money.

Do not use your credit limit by more than halfy

The amount of money you have available on your credit accounts has an impact on your credit score. Make sure you don't spend more than half of the credit limit provided to you.

If your credit limit on your card is Rs. 50,000 and you spend more than Rs. 25,000 per month on it, this will reduce your score. Anything over 50% that indicates a lack of financial management skills and shows that you're "hungry" for credit. This has a damaging effect on your score and hence should be avoided.

Keep an eye on your co-signed, guaranteed, and joint accounts on a regular basis

You must be aware of the fact that any time you co-sign an account, your credit history is linked with that creditor. So if you find that there has been a late payment on the account for which you've co-signed then it's advised to contact the creditor immediately and try to resolve this issue as soon as possible.

At the end of every month, make sure you review all your accounts and look for any discrepancies or errors in your report. If you find any such mistakes, immediately contact your creditor to fix them up.