Reasons Why Your HDFC CIBIL Score isn’t Improving Even after Doing Everything

Have you ever been in a situation where you have tried everything to improve your HDFC CIBIL Score but it isn’t moving up and you are left wondering what it is that you are not doing correctly? There could be a list of reasons why every time you enter the CIBIL score check free link and you are shown the same score. In this post, learn more about why your credit score may be stuck in place and what you can do to turn the situation around.

  1. Check your statement to see whether you have missed some payments in the past: Payment history, or your record of on-time payments, is the most important factor in calculating your credit HDFC CIBIL Score. While your creditor may consider your late payment if it’s just one day past due, however, if it’s 30 days past due, a late payment will get reported to the credit bureau. In case you have missed once or twice, you can turn around the situation by maintaining a streak of on-time payments
  2. Your Debt Balances Are High: The amounts owed on your debt accounts (loans and credit cards) are one of the most important factors in your credit score and could be the reason why your score remains the same every time you open the CIBIL score check free link. As your credit card balances go up, along with your credit utilization ratio, so does the risk you present to a lender, for the unversed, credit utilization ratio, which is the amount of credit you’re using divided by your credit limit. For that reason, it’s recommended for the benefit of your CIBIL score that you keep your credit utilization ratio as low as possible, or at least under 30%.
  3. You Have a Poor Credit Record: Another reason your credit score isn’t increasing and showing the same every time you use CIBIL score check free link is a lack of credit history. A longer credit history is generally good for your credit score, but a shorter credit history can be detrimental. As a result, a short credit history can prevent your credit score from rising.
  4. You have submitted too many credit card applications: A hard inquiry occurs when you apply for new credit and a lender reviews your credit reports. A couple of hard inquiries while applying for a loan or credit card on a regular basis may have little, if any, impact on your HDFC CIBIL Score. On the other hand, a series of recent hard queries on your credit reports may make you a riskier borrower in the eyes of lenders. Several hard queries in a short period of time could be one of the factors keeping your credit score from rising. It is advisable that you limit your credit card application to keep the number of hard inquiries to a minimum. Although hard inquiries may remain on your credit record for two years, their impact on your credit score diminishes over time.
  5. A creditor has reported incorrect account information: If a creditor has reported false information about one of your accounts, such as a late payment that never occurred or a wrong entry in your card, it may be lowering your credit ratings every time you check CIBIL score check free link. Misreported information on your credit report could include the following:

Closed accounts appear as open accounts on your credit reports, the same debt that appears at least twice. A substantially lower HDFC CIBIL Score than you expected could indicate that your credit activity is being reported as someone else’s. If you find incorrect information on your credit report, you can dispute it by contacting the credit reporting. You can also contact the bank that supplied the information to the credit reporting firm directly. Regularly reviewing your credit report allows you to detect and repair problems that may be lowering your credit score.

How You Can Work Towards Improving Your Credit Score?

Avoid maxing out credit cards: Maintain a record of your credit transactions, particularly your credit card usage. Check to see if you’re not exceeding or maxing out your credit balance, as this might have a negative impact on your HDFC CIBIL Score. You can set up several sorts of alerts (such as email and text) and other services to remind you of upcoming payments, allowing you to manage your credit responsibly.

Maintain a healthy debt-to-income ratio: Use an online debt-to-income calculator to analyse how much you spend on monthly recurring debts (such as loan payments, rent payments, and so on) with your income. Lenders look at your debt-to-income (DTI) ratio to determine your ability to repay new loans. Keeping your liabilities below your income ensures a DTI ratio is within, which may make it easier for you to qualify for new credit.

Before taking on new debt, do ensure you make payments: Determine your projected monthly payments for a new loan from a lender, then deposit this amount into a separate savings account for 3 – 4 months. If you can afford this expense comfortably, you can probably afford these payments. Furthermore, at the end of the practice period, you will have money in your savings that you may use to make a down payment, reduce your loan amount or put into an emergency fund.

Consider your options before cancelling accounts: Credit scores take into account your credit utilization ratio, therefore closing credit accounts may lower your available credit and could harm your credit score in the short term. This can also have an effect on the average age of your credit file. If the account has a strong payment history and a low or nil amount, keep it open.

So we are saying, 

You might be able to move things ahead more quickly if you start to make on-time payments and keep a balance on your credit card. The aforementioned are a few of the reasons why your CIBIL score might be going down and what can you do instead.

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