Your CIBIL score is an essential indicator of your creditworthiness. In fact, a good CIBIL score is key to improving your chances of getting fast approval on your unsecured business loan application. A good credit score can also help you get good terms on your loan.
Lenders like Bajaj Finserv consider a score of 685 or higher as ideal.
If you have a low credit score or are planning to avail of a loan in the future, follow these simple tips to improve your CIBIL score:
- Avoid defaults on your credit card bills and other payments
- Clear all your existing debt on time
- Lower your credit card usage to 50% of the credit limit
- Avoid applying to multiple lenders for a loan simultaneously
- Aim to borrow a mix of credit options, such as secured and unsecured loans
- Ensure that your credit report has accurate and updated information
Follow these simple steps to improve your credit score. But remember, on average, it takes between 4 and 12 months to improve your CIBIL score.
If you are unsure of your score, you can check your CIBIL score for free with Bajaj Finserv.