CIBIL Score: Do you want a CIBIL score of more than 800? Adopt this method, your credit score will increase..

Maintaining a good credit score or CIBIL score is essential to avail a personal loan or a credit card. A credit score is a 3-digit number that primarily reflects your creditworthiness, repayment integrity, and past credit history. In India, it usually ranges from 300 to 900.

Having a credit score above 800 can elevate your profile to the level of 'extraordinary' people. With this score, you can get the best interest rates on loans, premium credit card offers, and easy terms on loans. Below are some ways that can help you improve your credit score and reach 800 plus-

Pay bills and EMIs on time.

Always pay credit card bills, loan EMIs, or other loans on time. Late payments can harm your credit score. Set up automatic payments so that you don't miss out. Remember that even a single missed payment can hurt your score and bring it below 800.

Keep the Credit Utilisation Ratio (CUR) low.

Do not use more than 30 percent of your credit limit. For example, if your limit is Rs 1 lakh, do not spend more than Rs 30,000.

Maintain a long credit history.

Do not close old credit accounts, especially if they have a good payment record. A long and good credit history increases your credit score.

Take care of your credit mix.

Maintain a balance of secured (such as home loans) and unsecured (such as personal loans) credit. This shows that you can handle different types of loans responsibly.

Minimise hard inquiries

Too many applications in a short period lead to hard inquiries, which is a red flag for your credit score.

Check your credit report regularly.

Check your credit report periodically to ensure there are no errors (such as wrong loan entries). If there is any error, get it corrected immediately.

Become an authorized user.
If your family member has a long and positive credit history, you can ask them to become an authorized user on their card. This will allow you to immediately benefit from their good history.

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