Individuals holding a 750 credit score have higher chances of availing secured and unsecured credit than others. A high CIBIL score makes a person more creditworthy and establishes a clean track record of managing credit responsibly.
One of the easiest ways to improve credit score is by making debt payments on time. Clearing your RBL credit card payment will also increase your CIBIL score quickly.
Following are some methods through which you can increase your credit score and ensure that you are eligible to avail credit from various financial institutions.
What is a credit score and how to increase it through quick payments?
The CIBIL score is a three-digit code ranging between 300 and 900, which represents a summary of your credit rating and history. Most financial institutions look for a score of 750 and above to deem an individual creditworthy. Keeping your CIBIL score healthy increases your chances to borrow advances or get a credit card quickly upon application.
However, even if you have a CIBIL score below 750, you need not worry. You can apply some simple methods to increase your score, one of which is making quick and timely repayments of your existing advances and credit card bills.
When you apply for an RBL credit card, the card issuer will first launch a credit inquiry. Through the inquiry, financial institutions check your credit score and history. If the issuer finds that you are unreliable with payments and managing credit, they will deem you to be risky and subsequently cancel your application.
Delays in repaying your debt can also affect your CIBIL score negatively, which can take months to improve. Even a small delay can stay in your credit report for up to 7 years. Therefore, if you are looking for ways to increase your credit score, repay your credit card debt and other advances as soon as possible. Making timely payments and in full amounts reduces your chances of missing a deadline and also helps to increase the credit score.
Other ways through which you can increase your credit score
In addition to timely RBL credit card payment, you can use the following other methods to increase your CIBIL score:
- Keep your credit utilisation ratio low
Credit utilisation ratio refers to the percentage of the credit you avail against your credit limit. Keeping a low credit utilisation ratio shows your card issuer that you are not entirely dependent on credit to make your payments, and you are capable of using a credit card wisely. You should aim to keep your credit utilisation on your RBL credit card below 30% for it to reflect positively on your credit score.
- Apply for new credit cards and advances only when required
Whenever you apply for a new credit card or any advance, the lender conducts a credit investigation. If you apply too frequently for advances, the lender will conduct consequent investigations, which can lower your credit score. So, avoid applying for credit too often.
- Avail a healthy credit mix
Having a healthy combination of both secured and unsecured credits can reflect positively on your credit score. It shows that you can handle various types of credits efficiently.
Make your RBL credit card payment in time and ensure that you integrate these ways to increase your credit score.
Also, before applying to enjoy the benefits Bajaj Finserv’s RBL Bank SuperCard, you should check other eligibility criteria to ensure that your application process is hassle-free. There are minimum criteria that can be fulfilled easily.
Further, Bajaj Finserv also brings pre-approved offers on credit cards that reduces the time to avail and helps you save time. These offers are available on various financial products, including home loans, business loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.
A high credit score can further help you avail lower interest rates on credits. It can also enable you to get more features and benefits on the same.