If you want to get a loan hassle-free, then enhance your credit score. A low CIBIL score may have a rejection of the loan. Delays in your payment history always lead to a low CIBIL Score. Many other things may cause a low credit score. You can avoid low credit score loans by following some proven methods to increase your creditworthiness and score.
Check for Credit Report
First, you are required to check your credit score. You cannot tread further until you know your score. The same thing happens with your CIBIL score. You need to check the report first. Go and check the online portals where you can get credit reports for free.
Accuracy is must
After getting the CIBIL report, check it many times. Sometimes it may be incorrect or inaccurate. A wrong CIBIL report can have a negative impact.
Some proven methods to enhance your Credit score:
1) Take a new credit card/ personal loan
For a good credit score, opting for a personal loan or credit card is vital. It begins by adding to your CIBIL reports. So if you have a low CIBIL score, enhance your portfolio. It is important to be reported and tracked.
2) Payments in Time
Clear your payments on time. If you are paying EMI of a loan, pay it at a given time. If you have a credit card, make sure to clear the bills timely. The expenditure depends on you through credit cards. So try to use it judiciously. Clear off all your bills and payments at the right time. It will be beneficial for you.
3) Clear more than the minimum due amount
If you want yourself to be free of debt in less time, then pay more than your minimum due amount. It will also add more points to the CIBIL score. If you have any outstanding due payments, make sure to pay them off. It can harm your credit score.
4) Never try to apply for a Credit card repeatedly
When you are applying for a loan, banks and lenders examine your credit score for knowing your creditworthiness. You have applied for a loan, and it gets refused by a few lenders, and you keep applying for a loan again. This scenario can hurt your CIBIL score for sure. So try not to apply for a credit card every time it gets refused. Increase your creditworthiness.
Conclusion
So while you are planning to opt for a loan in the future, the foremost thing is to check your credit score. A low credit score can be improved by the above methods. If your loan is rejected due to a low CIBIL score, then try to improve the score before applying again. Do not forget that paying bills on time and judicious use of credit cards is always positively effective on your credit score. Take the help of a DSA loan agent to clear doubts regarding Loans.