There are several factors that negatively affect your CIBIL score; from delayed payments to economic crisis, anything can be the reason for your failing credit score. The unexpected failure of your CIBIL score may have caused great worries to you but we will ask you to take it easily since these phases are common in the life of every entrepreneur. Rather than worrying about it, you should try to reconstruct your credit status. All you need to do is to have a great understanding of the concept of credit score and to follow few simple steps to get past the failure mark.
Here, are few steps that will help you to reconstruct the credit score:
1. Increase The Rate Of Credit Utilization
The best thing you can do is increase your rate of utilizing the credits existing already as this is one of the recommended things that the financial experts suggest to provide your CIBIL score with a momentum to reach to a certain height. By utilizing the percentage of existing credits, you can take the outstanding balance down to 30% of your credit limit. If you need aid with the credit utilizations then you can simply reach out to an online lending company to help you understand the knits and grits of credit utilization process. You can call them directly and speak with their advisers in the customer support team who will guide you through the entire process. The advisory bodies of these lending companies are full of truly experienced experts with vast knowledge on the processes who will be able to help you with their expertise and the helpful attitude towards the customers.
2. Curtail The Number Of Accounts You Have
If you choose to close the accounts with small credits then you will be able to get closer to a far better credit status than the present. With the closure of every account, you will get to a far better credit status without exerting much effort. If it is a case of early closing then you should go for the accounts that have the negative credit records. Apart from improving your scores, this method is also very much helpful in improving your pecuniary condition.
3. Ask Your Lender For Help
There are several lending firms which are open to help you out. If the condition is way out of your grip then you can ask your lending company for help to improve your credit score. This can be achieved without having to spend a single penny. Hence, it is better to ask for help to the NBFCs rather than destroying your image in front of everyone. You need to understand that you will not be asking the financial firm for giving cuts to the total credited amount rather you will be requesting them to make some adjustments to the repayment period.
4. Move Forward With The Accounts With Positive Credit Records
If the situation does not look good then you should not apply for any more credits rather you should try to reconstruct the credit score. So what you need to do is to close all the accounts with the negative records as we have already stated that it will help you to reinstate your CIBIL score and continue with only the accounts having positive records. It is always wise to continue with positive records if you want to get credits in the future.
5. Increase The Limit Of Your Credits
Most of the people face problems in reimbursing the pending credits but that does not mean, there is nothing else to do. If you are courageous enough to talk directly with your lender then you will be able to request them to increase your credit limit because that is the best thing that you can do at that time. It is a worldwide acknowledged method of reimbursing the credit scores and you must also take full advantage of it.