Job loss can affect you in many ways, it reduces your credit score, and with this low Score, you will not be able to take a loan in the emergency period. You need to understand ways to increase CIBIL Score.
Losing a job can be problematic, so you must be prepared with a plan as soon as you and your family come under this situation. Job loss affects not only your life but also the people near you as they are influenced by your life decision, especially when you are the sole bread-earner of your family. You can’t afford to hurt your civil Score. There are Ways to increase CIBIL Score.
An unexpected turn can put you in chaos and force you to set your priorities. Also, family pressure can make you mentally ill sometimes; you are not in a position to make such harsh decisions. So it put so much pressure to develop a plan for the future.
Few people know that losing a job can impact your CIBIL Score as your regular income is also affected, so you need to know how to increase your CIBIL Score. CIBIL score considers your past loans or debts and your past loan repayments. CIBIL score shows your creditworthiness and the history of repayments.
The CIBIL score is mainly not impacted by your job loss but keeps in check whether you have cleared all your loan payments on time. Thus, it is crucial to know the ways to increase CIBIL Score. This will decide whether you have a good CIBIL score or not.
Ways to Improve CIBIL Score After Job Loss:
Many people need help managing a good credit score. Still, following specific tips makes it easier for you to have a good CIBIL score; you can improve your CIBIL Score by being responsible for your finances and developing good financial habits.
Losing your job can be traumatic and hurtful, but it can also affect your credit profile because of not having a regular income. But here are five steps that you can keep in mind to increase or repair your CIBIL Score.
Paying bills on time
There are several ways to increase CIBIL Score. One of them is paying bills on time.
Paying your due bills on time will make it easier for you to improve your CIBIL Score. Repayment history plays an integral part in an excellent CIBIL score. Slowly repayment of your loans on time on a fixed monthly basis can give you a good credit score over a while.
Reducing your debt
Some other ways to increase CIBIL Score is by reducing your debt.
By reducing debt, you can improve your CIBIL Score by reducing credit card loans and lowering your credit utilization. This will automatically lead you to a good credit score. You can also be free from the earlier loan by repaying a loan from your little savings. It will take some time but can be repaid slowly.
It will make you financially stable, develop good financial habits, and make you aware of falling into a debt trap.
We are not accepting new credit requests
Make sure to limit the number of times you inquire about the new credit. New credit requests can be a trap you can fall into. First, you have to repay your earlier loans. This should be your priority first. Otherwise, you can be in financial trouble or a debt trap.
If you know that you won’t be able to repay a loan without a stable income or job, don’t apply for one. This decision can ruin your budget, and you will become financially unstable.
Clear the due payments
In case you have some outstanding payments to be made, it should be your priority to clear them first; whether it is your credit card loan or any other instrument, you should be able to clear all your dues.
Late payment of the loan and how late the payment has been made are already registered in your credit file. This will adversely affect your CIBIL Score. It is essential to have a high credit score.
Since many companies perform credit hacks as a part of hiring a candidate, many job employers look into CIBIL scoring your credit card history in the hiring process. If your job is related to finance management, you must have an excellent CIBIL score as a candidate.
A good history of a credit card can prevent you from losing your potential jobs, so make a good record of your CIBIL Score if you want to land your next fitted job.
Keep a good check of your credit score and report inaccuracies
It is essential to keep a good check on your CIBIL Score from time to time. By keeping a check, you will be able to detect the errors and take some measures to correct them. Keep checking your CIBIL Score to keep yourself updated about the loans you have repaid and which still need to be repaid.
Sometimes the report isn’t updated timely to reflect whether you have repaid your loan. So keep yourself updated, check your credit score, and report every six months.
Can CIBIL Score affect finding a job?
Yes, it plays a vital role in finding a job. Although it is not widespread in India, to be on the safer side, you should keep your CIBIL Score high. Certain company employers check your credit card score to ensure you are financially responsible.
To be safer, increasing or repairing your CIBIL Score is recommended to improve your chances of getting hired. And if you are applying for a job in the financial sector, then the CIBIL score plays a vital role in your hiring process.
In some cases, personal finances play a vital role in seeking a job. For many job profiles, especially high-level jobs, employers prefer to keep a check on the credit history of an applicant. Poor credit history can get you rejected for the job, so it’s essential to maintain a good CIBIL score. For that, you need to know the ways to increase CIBIL Score.
However, some job sectors, such as banking and financing, consider a good credit score when selecting an applicant. So, there are chances that you may lose a good job because of a low score.
The five factors above can help you increase your CIBIL Score, automatically increasing your creditworthiness. You can improve or repair your CIBIL Score by changing your lifestyle habits and resetting your priorities. This makes you more responsible for your finances and develops good financial habits.