A good credit score is immensely important for getting a loan on favorable terms. But do you know how to work on increasing your credit score?
Read ahead to learn how to improve CRIF score.
The credit score is a 3-digit number that tells about your creditworthiness to the lender. Credit scores range from 300-900 and a higher score is always considered better. Even though procuring a loan does not depend only on the credit score, it is a very important factor.
When lenders see a high credit score, they understand that you are a responsible borrower. It also throws a positive light on your credit behavior. That, in turn, helps you negotiate a loan on better terms.
How to Improve CRIF Score?
There are various credit information bureaus like CIBIL, Experian, CRIF, and Equifax. The roadmap to improving your credit score remains the same, as all credit bureaus collect information from the lenders you have ongoing loans.
Here are some pointers about how to increase CRIF score -
Close Past Dues
If you have any loans that you have left unclosed, consider paying them off. If you leave loans unpaid, they affect your credit score very negatively.
Also, consider not settling your old loans. Settling a loan refers to making a minimum payment instead of the whole due amount, and the loan gets marked as ‘settled’ on your credit report.
If you have any such loan accounts, you may consider reaching out to the lender and paying off the full amount. That way you can improve your CRIF score.
Make Timely Payments
Searching for ‘how to increase CRIF score’? Paying your ongoing EMIs and credit card bills on time is a great place to start.
In case you are facing a financial emergency, and cannot pay the bills in full, consider paying the minimum amount within the due date. That way you will be able to maintain your CRIF score.
Credit Utilization Ratio
Credit utilization ratio or CUR refers to the percentage of loan you take to the total loan amount available to you. 30% is the ideal CUR to have, as any higher than this may make you look credit-hungry.
Maintain Your Credit Age
You should close your old loans, but you should not do the same to credit cards. Older credit cards add to your total credit age, thus closing the older cards would reduce the number of years that you have been actively taking credit.
The best way out of this is to keep a minimum transaction going to keep the older credit cards active.
Diversify Your Credit
Various types of credit on your report show your versatility and ability to maintain different types of financial obligations. Try to build a healthy mix of secured loans, unsecured loans, and credit cards to improve your CRIF score.
Don’t Apply for Too Much Credit
Each time you apply for credit, the bank checks your credit report, which is often referred to as a hard pull. Too many hard pulls on your credit report make it weaker.
In case you want to know how to improve CRIF score, a good way is to not apply for credit when you already have a low score or are refused credit.
Monitor Your Credit Report
You might want to take a subscription to one or more credit information bureau reports so you can be updated with your score. When you monitor your score regularly, you can spot any misreporting or errors on your report.
If you spot any, make sure to raise a dispute and get it rectified.
Now that you know how to improve CRIF score, let’s take a look at the benefits of a good CRIF score -
FAQs
Searching for 'how to increase CRIF score'? Paying your ongoing EMIs and credit card bills on time is a great place to start. In case you are facing a financial emergency, and cannot pay the bills in full, consider paying the minimum amount within the due date. That way you will be able to maintain your CRIF score.
How do I improve my CRIF score? ›
Searching for 'how to increase CRIF score'? Paying your ongoing EMIs and credit card bills on time is a great place to start. In case you are facing a financial emergency, and cannot pay the bills in full, consider paying the minimum amount within the due date. That way you will be able to maintain your CRIF score.
Why is CRIF score so low? ›
Your CRIF Credit Score is a dynamic number that falls and rises depending on your credit behaviour. For example, when you apply for a loan, your score dips because of a hard inquiry. However, when you get the loan and start repaying it on time, a hike in your credit score can be witnessed.
Is 650 a good CRIF score? ›
A CRIF score of 650 is considered fair, but it may limit your access to favourable loan terms. To improve your creditworthiness, focus on paying bills on time, reducing outstanding debts, and addressing any negative items on your credit report.
What is a good CRIF score? ›
This makes lender comfortable to approve your current application for a loan or credit card. CRIF credit score generally ranges between 300–900. 300 is the lowest score indicating poor credit score and 900 is the highest score possible. A score above 700 is generally considered good.
How to refresh CRIF score? ›
5 ways to raise your Credit Score !
- Timely payment. Making your payments on time will help you improve this score. ...
- Credit limit usage. It is advisable to use the credit limits judiciously. ...
- Periodic review of scores. Your work does not end at just getting the credit information and score. ...
- Mix it up. ...
- Closing unused accounts.
Sixteen is not a score it's an exclusion code and is given to that individual whose all accounts are closed prior to 36 months and have not taken any new loan in past 36 months from the date of inquiry.
Is Experian better than CRIF? ›
There is no real basis to say that one of these scores is “better” than the other. Both are equally valid, and both are useful for lenders and credit applicants. Monitor both these scores carefully and raise any discrepancies if required. This will help you get the required loans easily at favourable terms.
What is a 580 CRIF score? ›
CRIF credit score range
| credit score range | status |
|---|
| 300 to 579 | poor credit |
| 580 to 699 | fair credit |
| 700 to 739 | good credit |
| 740 to 799 | very good credit |
1 more rowApart from CRIF, CRIF High Mark's investor-partners include State Bank of India (SBI), Punjab National Bank (PNB), SIDBI, Edelweiss, Shriram City Union Finance (SCUF) amongst others.
You can borrow as much as $40,000 - $100,000+ with a 650 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How to increase credit score? ›
If you want to improve your score, there are some things you can do, including:
- Paying your loans on time.
- Not getting too close to your credit limit.
- Having a long credit history.
- Making sure your credit report doesn't have errors.
Banks in India use the TransUnion CIBIL, Experian, Equifax, or the CRIF High Mark score. Out of these, the TransUnion CIBIL score is the one that is used most commonly. All credit rating bureaus generate credit scores and reports which help lenders assess the creditworthiness of borrowers.
How is CRIF score calculated? ›
These components include: Credit Mix: This assesses the ratio of your unsecured loans to secured forms of credit. Credit History: It encompasses a record of loans and credit cards you've utilized over the years. New Credit: Recent credit cards and loans you've taken are considered when calculating your credit score.
What does CRIF stand for? ›
CRIF stands for Centre for Research in International Finance, an acronym for the credit research agency that was established in 2007.
Is a credit score of 670 good enough to buy a house? ›
Generally speaking, you'll likely need a score of at least 620 — what's classified as a “fair” rating — to qualify with most lenders. With a Federal Housing Administration (FHA) loan, though, you might be able to get approved with a score as low as 500.
What is the difference between Experian and CRIF score? ›
There is no real basis to say that one of these scores is “better” than the other. Both are equally valid, and both are useful for lenders and credit applicants. Monitor both these scores carefully and raise any discrepancies if required. This will help you get the required loans easily at favourable terms.
What helps improve credit score? ›
If you want to improve your score, there are some things you can do, including:
- Paying your loans on time.
- Not getting too close to your credit limit.
- Having a long credit history.
- Making sure your credit report doesn't have errors.
A 670 credit score is within the "good" credit score range, but on the lower end of this range, as it goes from 661-780 for VantageScore® and 670-739 for FICO® scores.
