<p style="text-align: justify;">750 (or above) is the magic number you need to have as your credit score to avail an unsecured loan.</p>
<p style="text-align: justify;">But, if you already have such a CIBIL score, then why take a Personal Loan or credit card to improve it?</p>
<p style="text-align: justify;">Well, the higher your score is, the more credibility you have and the more eligible you become to avail credit in the future. Moreover, you will also be able to receive a higher loan amount in case you need it. You can further get the power of negotiation for lowering the <u>Personal Loan interest rates</u> with the lenders.</p>
<p style="text-align: justify;">So, for the reasons mentioned above, many individuals opt for Personal Loans or credit cards to improve their credit score.</p>
<p style="text-align: justify;">NBFCs in India are one of the top sources for such loans as customers have to fulfil only minimal Personal Loan eligibility criteria. Further, these lenders only require one to submit few Personal Loan documents for sanctioning the same.</p>
<p style="text-align: justify;">However, availing Personal Loans or credit cards will not merely improve the credit score. To ensure your CIBIL rating improves, you need to keep in mind the following points too:</p>
<p style="text-align: justify;"><img class="aligncenter wp-image-4407 size-full" src="https://incrediblemag.com/wp-content/uploads/2018/08/photo-1525856752284-068f6de5a51b.jpg" alt="" width="912" height="500" /></p>
<ol style="text-align: justify;">
<li><strong>Ensure </strong><strong>T</strong><strong>imely </strong><strong>P</strong><strong>ayment of </strong><strong>L</strong><strong>oan EMIs</strong></li>
</ol>
<p style="text-align: justify;">One of the crucial points to follow is repaying the loan EMIs in due time. Timely payment reflects positively on your CIBIL score, thereby, increasing it.</p>
<p style="text-align: justify;">On the other hand, failing to pay the EMIs within the due date would have an opposite effect on this score. Further, a lender will also charge an EMI bounce fee and a penal interest on the EMI.</p>
<p style="text-align: justify;">Using a Personal Loan EMI calculator beforehand can help you plan your credit repayment quickly and easily.</p>
<p style="text-align: justify;"><strong>2.Never </strong><strong>D</strong><strong>eactivate an </strong><strong>U</strong><strong>nused </strong><strong>C</strong><strong>redit </strong><strong>C</strong><strong>ard</strong></p>
<p style="text-align: justify;">Numerous credit card holders deactivate their card that has not been utilised for some time. However, doing just the opposite and using it responsibly can increase the CIBIL score.</p>
<p style="text-align: justify;"><strong>3.Never </strong><strong>U</strong><strong>tilise the </strong><strong>F</strong><strong>ull </strong><strong>C</strong><strong>redit </strong><strong>L</strong><strong>imit</strong></p>
<p style="text-align: justify;">Credit cards come with a credit limit and utilising the full amount will label you as a credit hungry person. This may impact negatively in your credit score, bringing it down.</p>
<p style="text-align: justify;">So, it is the best to keep credit utilisation to the minimum; it is advisable to use about 30% or 40% of the credit limit.</p>
<p style="text-align: justify;">Your credit card company may offer you to increase your credit limit if you have managed the card well. You may even ask the company to do the same.</p>
<p style="text-align: justify;"><strong>4.Pay the </strong><strong>E</strong><strong>ntire </strong><strong>C</strong><strong>redit </strong><strong>C</strong><strong>ard due </strong><strong>A</strong><strong>mount</strong></p>
<p style="text-align: justify;">The next step in improving your credit score is to pay the full credit card amount due. Many times, individuals pay only the minimum payable amount to avoid incurring interest on the outstanding amount. However, when it comes to taking the credit score up, this action is highly not recommended.</p>
<p style="text-align: justify;">Along with the ones mentioned above, you also need to keep the following in mind to improve your CIBIL score:</p>
<p style="text-align: justify;"><strong>5.Never make too many loan applications</strong></p>
<p style="text-align: justify;">Another factor that labels you as a credit hungry individual is applying for too many loans with multiple lenders. Additionally, with every loan application, the lender will make a credit check. With every credit check, the CIBIL score goes down a bit.</p>
<p style="text-align: justify;"><strong>6.Refrain from applying for a loan if once rejected </strong></p>
<p style="text-align: justify;">Never apply for Personal Loan instantly after facing rejection. If once denied, the lender will create a note of the same in the credit report. After approaching a new lender, he/she will inquire for a credit check and come across the same note.</p>
<p style="text-align: justify;">As such, this new lender might also reject your loan application. Multiple refusals will bring down the CIBIL score drastically.</p>
<p style="text-align: justify;">Hence, the smart move here will be to wait a few months before applying for a new loan after being declined.</p>
<p style="text-align: justify;">A Personal Loans and credit card can help you improve your CIBIL score; but, you have to follow the steps mentioned above to do so. Use a loan calculator to find out your EMIs so that you don’t face any monetary constrictions during repayment. After all, importance of good credit rating is maximum especially for a loan approval.</p>

Do Personal Loans & Credit Cards Really Help in Improving Credit Score?
