How to improve your CIBIL Score to get a Business Loan?
Good CIBIL score plays a vital role in securing your financial future and makes it easy to get lending products at lower interest rates. Most financial institutions check various parameters before sanctioning any loan. CIBIL score check is one of the parameters that is performed. Credit Information Bureau (India) Limited (CIBIL) is a credit information company that generates credit scores based on the borrower’s documents provided by the banks to them. CIBIL score is a 3-digit numeric that ranges between 300–900 in which any score above 750 or as close to 900 is considered good by financial institutions. Below mentioned are some useful ways to improve your CIBIL score to get a business loan at low-interest rates with added benefits:
- Pay your Loan EMIs and Credit card dues on time
- Set payment reminders of existing loans and credit cards
- Maintain low credit utilization ratio below 30%
- Timely check your credit report for mistakes to resolve them
- Maintain a good mix of secured and unsecured loan
- Avoid making too many credit card or loan requests with banks
- Do not close your older accounts or credit cards
- Ensure to pay-off the debt instead of setting them with banks
- Try to increase your credit card limit to maintain low credit utilization
- Maintain lengthy credit history for better lending prospects
- Choose long-term repayment feature while opting for any loan
By following these simple steps, you shall witness a gradual increase in your CIBIL score as the credit score does not change overnight and requires time. Be patient and observe the rise in your CIBIL score with time by performing these checks.
