Many of you will surely agree on the fact that there is one common worry that strikes the mind after you have made a credit card settlement is how can I repair my cibil score’’? Well, after the settlement of credit card it is usually a common question that bothers many. So, let me tell you, buddy, that it is possible to improve your score right after the settlement process but there is no instant or overnight quick fix for the same. That’s Right! Just like any diet or exercise plan, you should have patience, discipline and commitment to achieve your goal. So, without taking much of a time, let’s get to the point straight and let you about the tips to improve your credit score…
Convert Settled to Closed Status: If you have done the settlement with your credit card company, it would be a smart move to pay off your bills in full and change your status from ‘’Settled’’ to ‘’Closed’’. However, if your status shows settled, it will create a negative impact on your free credit score online as it clearly indicates that you have not paid off your dues completely. Go and talk to your credit card issuer and agree on a mutual acceptance amount, depending on your income and budget. And, make sure that you convert your settlement to a closed account so that you can enjoy a positive impact on your score.
Make Regular Payments: Your credit history plays a pivotal role in your credit profile and makes up almost one-third of it. Thus, the most effective and simplest ways to get your score on track is to pay off all your dues in a timely manner. And, try to pay in full, starting right away as it will boost your score immediately. However, if you find remembering the last date of dues difficult, all you can do is create a reminder on your phone so that you can never miss a payment and pay the same in a timely manner.
Clear Your Other Outstandings: If you have any other outstanding on your loan or credit card, it is definitely a big drag on your score. The more you wait, the more interest you need to pay along with late payment charges that will sum up a much bigger amount to clear your dues. Your credit score is a reflection of your credit history and repayment record, which includes the transaction details, late payment, etc. So if you have any other dues other than your credit card, it would be advisable for you to clear all your dues and ensure that you do not postpone the same in the future.
Avoid Exceeding 50% of Your Credit Limit: Another significant factor in which you need to pay attention is to avoid using your card more than 50% of its offered limit. Keep an eye on your overspending and try to minimize your monthly expenses. Shop only when you seriously need anything. Keep a check on your monthly statements, go through each transaction detail and figure out where you have to spend maximum. Try to keep your expenses under 50% of the offered limit so that things will remain under control and so are your score.
Continue Using Credit Card: In the wake of how to improve my cibil score, many people stop using their credit card. But doing so is not the best solution. Instead, it would be advisable to use your card because if you use it wisely, you would be able to rebuild your score. By demonstrating responsible credit behavior, it would be easy for you to get your score back. If you stop using the same, your credit cycle also stops which is definitely not a good sign.Lack of credit activity actually raises more question about your credibility and it will be a big problem for you in the future as far as availing a loan/credit card is concerned.
Hope you enjoyed reading the article!