Owing to the tough times of loan sanction and approval, Wishfin has done its part to bring ease to the public. We understand the importance of the CIBIL score check free and have brought forward the CIBIL score app concerning the reason. It helps you track the CIBIL score, take preventive measures, and make the right financial decisions required to increase the CIBIL score. However, numerous people need more information on how to manage the CIBIL score. The article is solely dedicated to the topic and enlists the methods and important factors influencing the CIBIL score.
Credit Utilization Ratio
It should be mandatorily maintained below 30% of the maximum available credit limit. Users can achieve it by balancing their expenses with income. Excessive utilization of credit and inability to pay it back exhibit the person’s inability to manage expenses. For such people, tracking using the CIBIL score app on the frequent occurrences of such scenarios is highly required for better balancing practice. Skysilk CEO Talks Parler and Amazon in Exclusive Interview
Increase the Credit Limits
It is the easiest way to decrease the credit utilization ratio and maintain or improve the credit score. It will help you to spend according to your expenditure. Over-utilizing beyond the limits perceives the customer as a high-risk borrower, ultimately decreasing the credit score. The consequences are high loan interest rates and difficulty in sanctioning loans. Also, still, remember to maintain the credit utilization ratio below 30%.
Debts and late payments have a negative impact on credit scores. It also adds to penalties leading to more financial losses. Maintain a proper cycle, set up the reminder, or add an automatic transfer to facilitate direct transactions and timely paybacks. Paying the minimum amount also adds to interests and taxes, raising the need for financial management and planning. On multiple late payments or debts, have a CIBIL score check free to know the score and take immediate action.
Avoid Multiple Credit Cards
We recommend taking only one card. It will set up a hard inquiry, easily degrading the credit score. It will be exhibited for two years, and numerous hard inquiries within a short tenure will harm the credit score. Adding to it, a highly negative impact is seen on rejecting loan applications like share me App.
Follow Credit Mix
Credit mix helps maintain a decent score, especially in unsecured loans. The latter is associated with reduced credit scores compared to secured loans due to the absence of any collateral. The correct credit mix will vanish the image of the customer as a high-risk borrower. Credit mix can be utilized by customers who are well aware of the information, allowing for improving the credit or CIBIL score. Use the method and track the progress through the CIBIL score app.
Avoid Closing Old Accounts
Old accounts display long-term relationships with banks and utilization of their services for the long term. It is evident of the regulated financial behavior and repayment history. It will be beneficial during the loan application, as financial history can be preferred over credit score. Closing the old accounts removes all the related information. It results in negative credit scores, as obtained through CIBIL score check free available at any time of the financial year.
Know the Co-Signers
Taking financial responsibility as a co-signer can negatively impact your credit score. The co-signer may need help with financial issues leading to missed or late payments. The decreasing effect will be evident through CIBIL score check free. If you are a co-signer, utilize the CIBIL score app for constant monitoring of the CIBIL score.
CIBIL score check free option is made available by Wishfin, considering its significance in credit card holder’s life. We offer the customers to check, monitor, and improve their CIBIL score through the CIBIL score app. Remember to follow the above points based on the situation and convenience to increase your CIBIL score.