How do I improve my CRIF score?

 

To improve CRIF score (which is also a credit score considered in India), an individual must maintain some financial habits. 

CRIF is a credit bureau that evaluates an individual’s creditworthiness just like others. Here are steps to improve CRIF score:

1. Check Your CRIF Score

Obtain your CRIF credit report and check if there is any incorrect information reported in it. If there are any incorrect details reported, submit a dispute against it immediately. Correcting any misinformation can help improve CRIF score.

2. Pay Dues on Time

Your payment history is one of the most significant factors that affects CRIF score. Ensure that all bills and EMIs (such as credit card payments, loans, utilities, etc.) are paid on time. As failure of a single payment can negatively impact your score. So, to improve CRIF score maintain timely payment.

3. Keep Credit Utilization Low

Credit utilization means the maximum limit that you used of your credit card. Try to maintain a credit utilization ratio below 30%. If you have high balances on your cards, aim to pay them down, this trick can help you improve CRIF score most effectively.

4. Reduce Outstanding Debt

If you have multiple loans or credit card debts, focus on paying them accordingly. High debt levels can lower your CRIF score. So, to improve CRIF score pay off your debts as soon as possible.

6. Maintain a Healthy Credit Mix

Having a healthy credit mix (credit cards, personal loans, car loans, etc.) can improve CRIF score, but be careful not to take on unnecessary credit facilities. Take varieties of your credit facilities with secured loans, unsecured loans, credit cards etc.

7. Avoid New Enquiry

Each time you apply for credit, a hard inquiry is made on your credit report. Multiple inquiries in a short time can negatively impact your score. Only apply for credit when necessary.

8. Avoid Closing Old Accounts

The length of your credit history can positively impact your score. Avoid closing old credit accounts, as doing so could reduce the average age of your credit, potentially lowering your score.

9. Consider a Credit Builder Loan

If your credit history is thin or you have no credit score, consider a credit builder loan. These loans are designed to help you build or improve your credit score by demonstrating your ability to make timely payments.

10. Monitor Your Credit Regularly

Keep track of your credit score over time and continue following these steps to gradually improve your CRIF score. Regular monitoring will help you stay on top of any changes and ensure your efforts are paying off.

.

By following these steps consistently, you should be able to improve CRIF score over time. The process can take a few months to a year, depending on your current score and financial situation, so patience is important.

How frequently CIBIL score is updated?

 

To know the CIBIL update time, a person should have to know what is CIBIL. 

CIBIL (Credit Information Bureau India Limited) is an agency of India, one of the credit bureaus, that collects and maintains the data records of borrowers (both individuals and companies)

CIBIL score ranges from 300 up to 900 for individual reports and 0 to 9 for commercial entities credit report.

Every financial institution (Banks & NBFCs) reports the credit payment history along with all kinds of credit records for every borrower as a record, to maintain the database so that their credit eligibility can be checked whenever needed. 

The database of CIBIL update frequently so that their payment history along with other records can be maintained accordingly.

Now, talking about the CIBIL update time, CIBIL score typically update every 30 to 45 days (depending upon the financial institution’s updation frequency).

This is because most financial institutions (banks and NBFC), report the credit activity of their customers to CIBIL portal in a frequency of one month. 

Therefore, any changes in your credit report, such as new loans, payments, or credit utilization, will be reflected in your CIBIL score during this cycle.

However, the exact timing of when your CIBIL score updates may vary slightly depending on when the lending entities report their data to CIBIL and when CIBIL processes it to display.