Your Checklist for a Credit-Positive Start to the New Financial Year
As the new financial year approaches, it’s important to take a few steps to ensure your credit is in good shape. By reviewing and managing your credit profile, you can set yourself up for a financially sound start to the year. Here’s a simple checklist to help navigate this process.
1. Review Your Current Loans, Credit Card Debts, etc.
- Why it matters: Understanding your loans, credit cards, etc. situation is key to managing your finances effectively.
- What to do: Take note of outstanding loans, credit cards, and monthly payments. Check if you can pay off any smaller debts or reduce credit card balances.
2. Make Timely Payments
- Why it matters: Your payment history is an integral factor in your CIBIL Score.
- What to do: Ensure that all bills and loans are paid on time. Set reminders or automate payments to avoid missed deadlines.
3. Do Not Exhaust Your Credit Card Limit
- Why it matters: Using your credit card within the credit limit can improve your credit profile overtime.
- What to do: Aim to optimize the use of available credit. If possible, pay down balances or request a credit limit increase.
4. Set Financial Goals for the New Year
- Why it matters: A clear plan for managing credit can help you stay on track throughout the year.
- What to do: Set realistic financial goals, such as saving a specific amount, paying off a loan, or improving your CIBIL Score.
5. Avoid Applying For New Credit In A Short Period Of Time
- Why it matters: Applying for new credit in the form of loans, credit cards, etc. in a short period of time can result in multiple hard enquiries, financial institutions pulling your CIBIL Score and Report to evaluate eligibility, which may affect your score.
- What to do: If you don’t need new credit, it’s a good idea to hold off on applications until required in the new financial year.
6. Check Your CIBIL Score and Report
- Why it matters: A quick review of your CIBIL Score and Report can help spot any discrepancies or mistakes that may affect your score.
- What to do: Raise a dispute and follow the process for resolution.
By following these simple steps, you can enter the new financial year with a clearer view of your credit and financial profile.
Stay credit-ready by monitoring your CIBIL Score & Report.
Disclaimer: The information posted on this blog (Information) is prepared by TransUnion CIBIL Limited (TU CIBIL). This Information is for generic informational purposes only and is meant for consumer education and awareness about credit scores, credit history and credit reporting. The Information posted on the blog does not constitute credit advice and the user will need to consider the same and take independent informed decisions . No part of this Information may be quoted out of context, distorted ,distributed, published and/ or reproduced in any form and manner whatsoever. Consumers are advised that the Credit Information Reports (CIRs) prepared by TU CIBIL are based on collation of information, substantially, provided by credit institutions who are members with TU CIBIL. TU CIBIL is not responsible and /or liable for errors and/or omissions caused by inaccurate or inadequate information submitted to it by credit institutions. TU CIBIL does not guarantee the adequacy or completeness of the Information and/or its suitability for any specific purpose nor is TU CIBIL responsible for any access or reliance on the Information. TU CIBIL expressly disclaims all such liability. Further, this Information is based on the data available with TU CIBIL at the time of publication and therefore may not be up-to-date.