If you have recently applied for HDFC personal loan or any other personal loan and got rejected because of HDFC personal loan CIBIL score wasn’t high enough, don’t be disheartened. There is some good news for prospective borrowers who are unsure about their ability to quickly raise their credit scores. You can increase your credit or HDFC CIBIL score within 30 days by adhering to the specific set of advice described in this blog. Although there is no “quick fix” to improve your credit score, it is best to start improving your credit score as soon as possible. Building or rebuilding an excellent credit score might take months or even years, especially if you’ve made some big mistakes recently. However, there are some actions you can take right now for the next 30 days or so that will raise your credit score.
What Influences Your Credit Score?
Before we get down to how to improve your credit score in a short period, let’s understand what exactly influences your HDFC CIBIL score. The HDFC personal loan CIBIL score is impacted by five factors. Understanding those factors and how each one of them impacts your score can help you prioritize your efforts to improve your credit history.
Payment background: Your payment history is the most crucial factor in your HDFC CIBIL score. To keep a positive payment history, it’s essential to pay on time each month. Your credit score may suffer if you miss only one payment by more than 30 days.
The total amount owed: This aspect of your credit score takes into account the total amount you owe, but it focuses more on your credit utilization ratio than anything else. The percentage of your available credit on your credit cards that you are utilizing at any given time is known as your utilization ratio. Your HDFC credit score will benefit the most if your balances are lower than your credit limitations.
Length of credit history: The length of your credit history is taken into account, along with the average age of your credit accounts. If you open multiple credit accounts in a short period, it can significantly decrease the average age of your accounts, so you should only apply for new credit when you need it.
Credit mix: Having a variety of credit on your credit reports demonstrates a broader range of your debt management skills. For instance, having a house, vehicle loan, school loan, and other loans may be preferable to merely owning a credit card in the eyes of a lender. To improve your credit mix, you shouldn’t, however, apply for more credit if you want your HDFC personal loan CIBIL score to stay improved.
Best Ways to Boost Your Credit Quickly
Although it’s difficult that you can improve your HDFC personal loan CIBIL score to the level you want in just 30 days, there are some steps you can take to do it more quickly than others:
Pay off credit card debt: Your credit card and other revolving credit account balance changes affect your credit utilization rate. If you have the resources to pay off huge debt quickly—either with cash or through a consolidation loan, your credit score will be updated as soon as your lenders report the lower balance.
Dispute Credit report inaccuracies: Rarely, creditors might report the credit bureaus of inaccurate information. To ensure everything is accurate, regularly check your credit report. File a dispute with the credit bureaus if you notice any information that is false. The information will be changed or erased if their research proves your case, and your credit score will be updated to reflect the adjustment.
Make consistent and larger payments: Paying your bills on time is one of the best strategies to raise your rating. Although missed payments cannot be undone, you can raise your credit score by paying off as much of your outstanding bills as you can. Don’t believe the widespread misconception that having credit card debt improves your credit; it doesn’t. In actuality, paying for all of your purchases each month will help you save on interest charges and raise your credit score. Paying out your amount in full before the closing date may help your credit score because creditors report your outstanding balance to the credit agencies at the end of each month.
Reduce your credit utilization ratio: Even if you wind up skipping one or two bill payments, this professional advice on how to raise your credit score in 30 days still applies to people who already have a credit score that is pretty high and want to make sure it stays that way. Keeping your credit utilization below 30% is one of the little-known tricks to raising your credit score in 30 days. Assuming you want to increase your credit limit from Rs. 1 lakh to Rs. 2 lakh soon, don’t charge more than Rs. 30,000 to your card till your CIBIL score improves. By doing this, you will quickly improve your CIBIL score as well as end up repaying your bills on time.
If you get rejected, stop applying for credit: Your credit report will contain information on any loan or credit card applications you have made and were denied. If you immediately apply to another bank, that particular bank may reject your loan application if they see your low score and the previous rejection. The best course of action in these situations is to refrain from applying again and wait for the score to rise.
Again, improving your existing HDFC CIBIL score might take time, but by taking these actions, you can get a jump start and see results sooner rather than later.
It is sometimes hard to digest that a 3-digit number can have such a major impact on your financial health, but credit scores are not something you can take lightly. The lower your credit score, the riskier you will appear to lenders, and the higher your loan interest outgo will be. Poor credit can happen due to missed payments, high credit utilization and much more. The tips given above can altogether improve your credit score. When you check your credit report and CIBIL score, analyze how well you are handling each of these factors and what adjustments you are making to improve your HDFC CIBIL score.