Financial requirement may emerge at any point of time, and if you do not have adequate saving, the only way out is getting a personal loan or mortgage based loan. So, whether it is personal loan, car loan, business loan or mortgage based loan, every financial institution will first analyse your credit score before giving the loan. CIBIL score is the parameter to judge your credit worthiness. So, if you have found that your credit score is not up to the mar, here are a few ways to fix it for your financial independence.

Keep Track of Credit Report

It is essential that one is regularly monitoring one’s credit report. At times, due to technical issues, your credit report may not be sound. Therefore, everyone ought to keep track of their credit score, and in case of any errors, they should ask the bank or other financial institutions to rectify the error.

Credit Hungry Behaviour

Most of the people are affected by this behaviour. And under this behaviour, they often resort to taking more loans than they can actually pay. In this way, they are often debt ridden and banks put them on the “to-be” defaulter list. In case, if you have such a habit, it is high time to get over that. As per the financial modus-operandi, at least two loans are considered safe, and when the debt to income ration is 1:2. Any instances, where the debt to income ratio is either 1:1 or 2:1 is taken with apprehension by the financial institutions.

Mix of Borrowings

Borrowing should not be restricted to just one category, rather, people should analyse and evaluate and take the necessary call as and when required. If one is taking secured and unsecured loans at the same time, it will maintain a positive impact on the CIBIL. As secured loans lead to long term appreciating assets, on the contrary, unsecured loans lead to more liabilities.

Keep these small things in mind and the outcome will be beneficial for you.