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.
