So, you are planning to take an unsecured business loan at a lower interest rate but don’t have a good CIBIL score? Well, being a member of the credit world, you might know the importance of the CIBIL score. This 3-digit numeric summary represents your credit history and helps lenders know about your loyalty and dedication towards the loan repayment. It ranges between 300 and 900; the closer your score is to 900, the better your credit rating is. A CIBIL score is formed by accessing your credit history; the sooner you repay the debts, the better your credit history is. This score plays a critical role in the loan application process and is the most influencing factor in loan disbursement. If your credit score is high, then visit ZipLoan and get your loan disbursed in just 3 days with minimum documentation and eligibility criteria.
Now, what to do if your credit history is not as good as it should be to get easy and fast loans? Well, don’t worry and simply focus on the factors that impact your credit score and just try to improve it. Here are mentioned 7 guaranteed ways to improve your CIBIL score immediately.
7 Ways to Improve your CIBIL Score
Pay your Dues on Time
It is a kind of no-brainer tip that you should pay your dues on time in order to improve your credit history and creditworthiness. Your credit score goes down owing to several factors, and unpaid dues are one of the major ones. If you genuinely want to enhance your CIBIL score immediately, then clear your unpaid dues as soon as you can, and see improvement in the CIBIL score. Set reminders for your EMIs and be disciplined with credit. Your settlement of outstanding debt has a considerable impact on your CIBIL score and payment delays, not just forces you to pay the penalty but lowers your credit score as well. So, if you are looking forward to improving your credit history and CIBIL, then get ready to pay your dues on time and rack up a good CIBIL score for a business loan.
Use Credit Prudently
The next guaranteed way to improve your CIBIL score is to use your credit card prudently and avoid taking too much loan at once. The number of loans you are applying for at a time also affects your credit score, and thus, it should be kept minimal. To avoid crashing of the credit score, repay one loan and then take another. Look, if you opt for multiple loans at the same time, then lenders will think that you are in an unforgiving cycle with insufficient funds. Boost our credit score by taking one loan at a time, repay the same and get another one as per your requirements.
Opt for a Longer Tenure when you take a Loan
Another alternative to increase your credit score is to opt for the longer tenure period when you take a loan for business without security. Longer tenure allows you to settle your debt with much ease and comfort. Long tenure ensures your EMI to low so that you can make easy payments on time. If you are looking for a lender who offers longer tenure, then visit ZipLoan right away and get three tenure options, i.e. 12 months, 18 months and 24 months. You can choose the option as per your pocket. When you don’t delay, skip or default while paying EMIs, then your credit score will automatically go up.
Check your credit reports regularly
Checking your credit reports regularly allows you to find errors if any, and gives you a chance to correct them. In your head, you might have an excellent credit history, but the actual situation will be printed on the report, which you should check regularly. There can be various unknown errors that might be pulling your score down. For example, if you’ve paid your loan entirely at your end but is still appearing as a current due because of the administrative mistake, then it might lower your score. Therefore, you will have to keep a check on your credit report to check for errors and to correct the same as early as possible.
Maintain a healthy credit mix
Just thinking about how to improve the CIBIL score is not enough as you have to take some steps to ensure the same. Try to maintain a healthy credit mix of unsecured loans like personal loans, business loans, working capital loans, etc. Remember, a borrower with a healthy credit mix is preferred by the lenders as this assures them of timely repayments. Also, this will ensure you a good CIBIL score and credit rating.
Say No to being a Joint Account Holder
If you want to improve your credit score, then say a big NO to being a joint account holder. The reason is straightforward as any defaulter activity from the second party can bring your credit score down and affects your credit history as well. In jointly held accounts, you are equally liable for missed payments. No matter how clean and punctual you are at your end, your credit history will also showcase the results of activities done by both partners.
Maintain older Credit Cards
Last but not least is to maintain older credit cards as long as possible to lengthen credit history. A strong and lengthy credit history will surely help you in improving and maintaining a good CIBIL score to avail loan.
If you are looking for a loan amount that ranges between Rs 1 lakh and Rs 5 lakhs, then visit ZipLoan with your bank statement of the previous nine months, PAN card, business address or house proof, and last 2 years’ ITR. They offer quick & easy unsecured business loans with the least eligibility conditions and documentation.