The dos and don'ts of maintaining a healthy CIBIL score

 Here are some dos and don'ts to maintain a healthy CIBIL score:

Dos:

• Pay your bills on time: Timely payment of your bills is crucial to maintain a healthy CIBIL score.

• Check your credit report regularly: Review your credit report regularly to ensure that there are no errors or discrepancies in it. If you find any errors, get them corrected immediately.

• Use credit judiciously: Use credit only for necessary purchases, and ensure that you have the means to repay the debt on time.

• Maintain a healthy credit mix: Having a good mix of secured and unsecured loans can help boost your score.

• Keep credit utilization low: It is advisable to keep your credit utilization below 30% of your credit limit.

• Keep your credit accounts active: Keep your credit accounts active by making small purchases and paying them off on time.

• Notify the credit bureau of any changes in personal information: Notify the credit bureau of any changes in your personal information, such as a change in address, phone number, or email ID.

Don'ts:

• Don't make late payments: Late payments can hurt your credit score and make it difficult for you to get credit in the future.

• Don't default on loans or credit card payments: Defaulting on payments can severely damage your credit score and make it difficult to get credit in the future.

• Don't apply for too much credit at once: Applying for too much credit at once can hurt your score as it implies that you are credit-hungry.

• Don't ignore your debts: Ignoring your debts can cause them to spiral out of control and result in defaults.

• Don't cancel credit cards: Canceling credit cards can reduce your credit limit, which can increase your credit utilization ratio and hurt your score.

• Don't use all your available credit: Using all your available credit can indicate that you are credit-hungry and can hurt your score.

In summary, maintaining a healthy CIBIL score requires paying bills on time, using credit judiciously, maintaining a healthy credit mix, and keeping credit utilization low. Avoiding late payments, defaults, applying for too much credit at once, ignoring your debts, and canceling credit cards can help maintain a healthy credit score.