CIBIL score ranges between 300 to 900. TransUnion CIBIL is one of the four credit bureaus generating reports associated with a credit score in India. A credit score between 300 to 559 is considered as poor and in between 560 to 800 Is considered as good while more than 800 considered as excellent.
How Long Does It Take to Rebuild Credit?
Typically, it takes a minimum of 3-6 months to improve your poor credit score to ascertain a clear change in your credit score. it’s difficult to form a change any faster, unless the negative information on your credit report was a minor blip, like being late with bill payments one month
5 TIPS TO IMPROVE YOUR CREDIT SCORE
1. Set Up Payment Reminders
Consistently paying your bills on time can raise your score within a couple of months so note down your payment deadlines for every bill and clear them on time. There are many mobile applications available to remind you about your bill payments.
2. Pay More Than Once in a Billing Cycle
Paying bills multiple times rather than once in a month lowers your credit utilization and definitely improves your score.
3. Don’t Close Unused Credit Cards
The age of your credit history matters, and a extended history is best . If you want to close credit accounts, close newer ones.
4. Pay Down “Maxed Out” Cards First
If you use multiple credit cards and the amount owed on one or more is close to the credit limit, pay that one off first to bring down your credit utilization rate.
5. Quick Loan Shopping
If you have a very bad credit score and you are unable to improve it taking a smaller loan amount of $200 to $1000 that get repayment history reported to credit agencies, and can become a positive on your credit report