mastiman

Improving credit score

I took shit tons of buy now pay later during my college days and couldn't really pay on time, now my credit score dropped to 540, how do i improve this? i am still in my final year so i have a year to improve, would love to know insights about this, what should be a decent credit score by 2024 june keeping in mind my score now & that i have cleared all the bnpls

12mo ago

majboormajdoor

Stealth12mo

Don't target a credit score in limited amount of time. Their Algo is dynamic and not something you shud aim. Anything above 700 is good.

Your delinquencies remain on your report for 3Y only (as of now, can change later). Get a credit card somehow or a secured card (one with an FD) and build on it. Don't revolve, pay in full. Do not take anything else, Avoid personal/consumer loans at any cost.

majboormajdoor

Stealth12mo

Banks and NBFC's look down upon BNPL/consumer/gold loans. The view on BNPL might change with time. A lower ticket loan is a bad signal (signifies you need credit for smaller amounts too). Higher amounts with higher tenures that you have diligently served, will build your credit score. The only exception is Credit card, where a higher limit with lower usage is a positive sign.

Elon_Musk

X.com12mo

Delinquency is worse than a bad credit score. Anything above a 650-700 is a good score

supercoder74

British petroleum12mo

You can open a FD of 20-30k in ICICI and get a CC against it for 85% of the amount. Of this also use only 30% limit at any point in time. You cibil will improve in an year to 750-770+.
Best way, use it for fuel only every month.

CanineHolder

Stealth12mo

You can take Rupicard - credit card against FD, helps improving CIBIL

Sreekanth

Unnamed12mo

750 is good score.

Moistcookies

Everestek12mo

I went through this, I just paid off all my loans once i got a job. Also follow up with the lender if they have sent your updated your report to the CIBIL.