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10 Guaranteed Ways to Improve Your CIBIL Score

If you wish to Improve your CIBIL Score, here are the top 10 options available:

Credit Card
Every financial institutions issuer has different credit card eligibility criteria. Flickr

Whether you are looking for a Home Loan in India or any other credit facility, one of the most important things is your CIBIL Score. The higher the CIBIL score, the more are the chances of getting an approval on loan. You are also able to negotiate better deals when you have a high CIBIL Score.

Your CIBIL score is calculated based on the promptness of your repayments towards the credit facilities availed, the loans and credits that are currently against your name and your general credit behavior. Individuals with a higher CIBIL Score are considered more reliable by lenders.

If you wish to Improve your CIBIL Score, here are the top 10 options available:

1. Make Regular Repayments

The most important factor to affect your CIBIL Score is the repayment history that you have. You need to make sure that EMIs towards existing loans, Credit Card repayments, and any other credit facilities are made on or before the due date. The discipline in making your repayments leads to better CIBIL Score. It helps to set reminders on your phone for bill payments.

2. Avoid Cash Withdrawals With Credit Cards

Most Credit Cards today provide a cash withdrawal facility. Make sure that this is utilized only during an emergency. Regular withdrawals using your Credit Cards indicate a financial crunch and can reflect poorly in your credit history.

3. Have a Balance between Unsecured and Secured Loans

Having a right mix of different kinds of loans can work wonders for your Credit Score. It is a good idea to have both Secured and Unsecured Loans. Having only Unsecured Loans is also an indication of a difficult financial situation and can reflect poorly on your credit behavior. If you have a mix of various kinds of loans such as Mortgage Loans, Vehicle Loans and Home Loans in India, you are considered a much more reliable candidate for an added credit facility.

4. Reduce Debt Utilization

The lesser the loan amount that you use, the better it is for your CIBIL Score. Even with your Credit Card, minimize usage on the available limit. This reduces the repayments that you make towards these credit facilities each month. This, in turn, improves your debt-to-income ratio, which plays a vital role in your CIBIL Score.

Having a low debt-to-income ratio means that you have a sizable income that can help you make repayments towards credit facilities and also meet your day-to-day expenses.

credit card
When you fail to make your credit card bill payments, not only does your credit score take a hit, but you also show bad repayment capabilities.

5. Make Sure That All Incorrect Information from Credit Report is Removed

It is very important for you to check your Credit Report regularly. You can get your credit information report each year or twice a year from any of the major credit bureaus. Studies have revealed that on many occasions, individuals can have a much lower Credit Score than they should actually have. This could be because of any wrong information that is entered in your Credit Report. Make sure to dispute wrong records on your CIBIL report.

6. Avoid Applying for New Credit Cards

Every time you avail of any credit facility, your Credit Score reduces. It is also true that the credit inquiry is stricter with every new application that you make for a Credit Card. Making too many inquiries with different institutions can also affect your Credit Score. This is why experts advise you to research different cards available thoroughly before you apply for one. Do not make multiple applications even if it is your first time Availing a Credit Card as it has a major impact on your Score.

7. Pay Off Your Debts

The simplest way to improve your debt to income ratio is to repay your debts as soon as possible. If you have access to any additional funds and have loans that do not charge any prepayment fees, it is a good idea to close the loan account. You can also reduce the tenure of the loan after you have made a few payments towards the EMI. This helps you close your loan account faster, and gives you a better CIBIL Score as the debt to ration income reduces.

8. Pay More than the Minimum Balance

Avoid using the revolving credit facility that is provided on your card. Yes, there could be instances when you can only make minimum balance repayments. However, on other occasions, it is a good idea to pay a little more than your minimum balance. This helps reduce the outstanding amount. Remember that your Credit Card accounts for a significant portion of your Credit Score. As a result, it is a good idea to clear the outstanding amount faster. The idea is to reduce the collective balance that you have towards different Credit Cards to enjoy a better Credit Report.

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9. Retain All Existing Credit Cards

If you already have multiple Credit Cards, it can work to your favor even if you do not use most of them. This indicates that you have long Credit History. This shows that your Credit Worthiness is high, because of which lenders can provide you with multiple credit facilities. Keeping your Credit Card account active even if it is not used frequently, your credit history lengthens and helps you improve your CIBIL Score. Unless you are paying too much towards the annual fees, it is a good idea to retain old Credit Card.

10. Get Professional Guidance

You have the option of working with professionals such as finance consultants and consumer credit counselors who help you understand your credit report in depth. This is especially useful for those who currently have a bad CIBIL Score but are unable to revive it despite trying most techniques and methods. With professional help, you can successfully improve your Credit Score effectively.

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Tips to Make the Most of your Amazon Pay ICICI Credit Card

As per the terms and conditions, the buyer must consider the Amazon pay balance while calculating the amount of cashback he gets

Amazon, ICICI, Credit Card
It will be the best move for you to turn into a Prime member of Amazon and use the card to save much money. Pixabay

The ICICI Bank delivers a few premium credit cards to the deserving customers. Among them, the Amazon Pay ICICI credit card has explicit prominency. ICICI Bank has collaborated with Amazon to provide the customers with attractive discounts and cashback on purchases made from Amazon. There are a number of benefits that you can enjoy being a cardholder of the Amazon Pay ICICI credit card. Along with the benefits, the tips are also mentioned here in details.

Benefits and Tips on Payment on Amazon Purchases

There are several benefits on payments that you can enjoy during each Amazon purchase. These are discussed below in details:

Use the Cashback Rewards

Amazon, ICICI, Credit Card
There are several benefits on payments that you can enjoy during each Amazon purchase. Flickr

There are mainly two types of Amazon customers, Prime and Non-Prime. The aforesaid credit card provides 3% cashback for the Non-Prime Amazon customers while a 5% cashback is delivered to the Prime customers of Amazon on each purchase. It will be the best move for you to turn into a Prime member of Amazon and use the card to save much money.

As per the terms and conditions, the buyer must consider the Amazon pay balance while calculating the amount of cashback he gets against the purchase made with the credit card. So, it is always advisable to go through the terms and conditions of Amazon Pay thoroughly.

Try Collecting Cashback Rewards on Partner Merchants

The ICICI bank customers who hold the Amazon Pay credit card issued by the bank can get 2% cashback on all purchases done using Amazon Pay merchants. You can access more than 100 Amazon Pay merchants while buying any product from the e-commerce site. Try to shop from the Amazon Pay merchants more to make the most usage of the Amazon Pay ICICI credit card. Also, make sure the terms and conditions are necessarily followed.

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Enjoy Cashback on Every Purchase

Apart from the Amazon purchases, all the customers can get 1% cashback on all purchases irrespective of being a Prime of Non-Prime customer. Thus, a customer can enjoy exciting shopping sessions every time while holding the credit card mentioned above. The best move you can take is to shop from Amazon during the festive seasons. As you buy different things using your credit card during the festive seasons, you might get the opportunity to save hefty amounts of money. 

Take the Fuel and Dining Rewards

Since it is a premium card from ICICI Bank, you can get fuel and dining rewards while holding the card that is discussed here. You can get up to 15% discount on your regular dining bills. Furthermore, in terms of fuel charges, you can get a 1% discount on fuel surcharge on refuelling. Hence, you can use the Amazon Pay ICICI credit card while paying the bills and regular refuelling of your car and can enjoy discounts at the same time.

Amazon, ICICI, Credit Card
The aforesaid credit card provides 3% cashback for the Non-Prime Amazon customers. Flickr

Take Advantage of No Earning Expiries

As the credit card mentioned above provides cashback rewards, a common thing that can relate to it is the expiry date. The users of the ICICI Bank Amazon Pay credit card can use the cash back rewards anytime as there is no expiry date. Moreover, there is no maximum limit on your reward earnings. So, once you take this card, you can use the rewards anytime without any fret of expiry.

Provide No Joining and Annual Charges

ICICI Bank does not charge any joining or annual fee on the Amazon Pay credit card. So, you can comfortably use it without hassles once it is approved for you. Basically, the absence of the joining and the annual charges minimizes your expenditure of owning a well-rewarding credit card. Since there is no minimum spend limit, your expenses will always be in tandem with your needs. 

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Utilize the Ultimate Security Measures of the Credit Card

ICICI Bank delivers its customers optimum security when it comes to a credit card. The technology of embedded microchip could restrict the frauds to use your credit card even if it lost. Additionally, it brings down the chances of credit card duplication. You can approach the issuer bank to ensure that all the security measures are installed correctly in your credit card.

If you by chance, forget your PIN card, contact the nearest ICICI Bank branch informing the bank professionals about your problem. They can help you while executing the necessary procedures to re-issue a new PIN for you.

Hence, these are some useful tips that you can follow to enjoy the outstanding benefits given by the Amazon Pay ICICI Bank credit card. Nevertheless, you must also satisfy all the requirements of the bank to get a premium card like this. No random customers can approach for the Amazon Pay ICICI credit card. You can only get it if the bank invites you as an eligible customer. 

The key criterion that might elevate the chances for you to get this card is already owning ICICI credit card. Furthermore, your financial history should be good. Before inviting you to apply for a credit card, the bank checks your credit score minutely. You might keep minimum expectations to get this card if you don’t own a credit card already. Even if you have a savings bank account in ICICI Bank with a lump sum principal, the bank might not deliver you the Amazon Pay card if you do not own a credit card. 

A customer is only advised to accept the invitation of the bank only if he is into online shopping. Nonetheless, this caution is common for all credit cards. Frequent purchases from Amazon with the credit card must be made with care. You should always check the credit limit granted to you by the bank. Avoid making any online purchase from Amazon that goes near your credit limit. It can restrict your chances of further purchases from Amazon. Make sure you gather authentic information about the penalty charges from the official website of the ICICI Bank. The penalty charges can be levied on you in case of any failure in repayment of outstanding bills.