Credit Score Tips: Credit score, also known as CIBIL score, is an important measure of your financial health. There are many people in the country whose credit scores are around 620. Banks and financial institutions consider it a 'low score'. In such a situation, you may have trouble getting a loan. Due to low scores, banks charge higher interest rates, loans are delayed, or sometimes loans are not available at all. However, you can improve your credit score with some easy methods.

According to experts, "A Low credit score is not permanent. Make payments on time, do not overuse your credit card, and do not apply for loans repeatedly. Small changes can improve the score." Why is a 620 score low?

A CIBIL score between 551-620 is considered 'low', due to which expensive loans are not available, or applications may be rejected. According to the new RBI rule, banks will now have to update the data of customers every 15 days. This means that the impact of your good or bad financial behaviour will be reflected on your credit report very quickly, which will help financial institutions to make an accurate and up-to-date assessment of your creditworthiness.

Easy ways to improve your credit score-

Pay on time – do not make late EMI or credit card payments. Set up auto-debit.

Use less than 30% of the credit limit – this makes you look responsible.

Keep both secured and unsecured loans, such as a home loan and credit card balance.

Do not apply for new loans or cards repeatedly – this affects the score.

Do not close old credit accounts – a long credit history strengthens the score.

Keep checking the credit report – if you see any mistakes, get them corrected immediately.

In how much time will the credit score improve?

By adopting the methods mentioned, you can bring your credit score to the 'fair' range of 650-700 in just a few months. This will help you get cheaper loans, better credit cards, and attractive loan offers at lower interest rates, thereby strengthening your financial position.

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