Know more about how to increase CIBIL score without job.
Experiencing a job loss can have a negative impact on various aspects of your life, including your self-esteem, personal life, professional record, and financial profile. However, it’s important to remember that this is a temporary phase in your life. In addition to navigating this challenging period with resilience and emotional strength, it’s advisable to work on improving your credit score to maintain a favorable financial standing.
In India, the credit score is called the CIBIL score. If you’re contemplating ways how to increase CIBIL score and manage during this difficult time, you can achieve this by adjusting your lifestyle habits and reevaluating your financial priorities. Let’s delve deeper into this subject.
Is Your Credit Score Relevant for Job Searches?
Although checking one’s CIBIL score isn’t a widespread practice in India, some employers do this to ensure a candidate’s financial responsibility. Regardless of its popularity, potential employers may access your credit score through your provided documents.
To be on the safe side, it’s recommended to work on improving your CIBIL score to increase your chances of securing a job, especially if you work in the financial sector or have responsibilities involving cash or financial management for individuals and companies.
Strategies for Enhancing Your CIBIL Score After a Job Loss
Losing your job can sometimes impact your credit profile due to a lack of regular income. Nevertheless, you can reverse this trend by maintaining financial prudence. Here are five actions you can take to increase and repair your CIBIL score:
Maintain a Strong Repayment History:
Timely payment of utility and credit card bills is crucial for a positive credit profile. Consistently paying bills before their due dates will gradually lead to an excellent CIBIL score.
Reduce Debt:
While searching for a job, consider using your savings to pay off small loans and make nominal extra credit card payments. Demonstrating responsible debt management earns you favorable marks from credit bureaus, positively impacting your credit score.
Avoid Applying for New Credit:
It might be tempting to apply for new credit, such as a personal loan, but doing so without a reliable means of repayment can harm your credit profile. Additionally, each new credit application triggers a hard inquiry on your credit report, which is best avoided.
Monitor Your Credit Report:
Regularly check your credit report for inaccuracies. Human errors or omissions, such as missed payments or loan closures, can negatively affect your credit score. It’s advisable to review your report every six months and request corrections if you identify any errors.
Settle Outstanding Debts:
One of the quickest ways to boost your CIBIL score is to promptly clear all outstanding payments. Late payments and penalties indicate financial instability. By keeping your dues up to date, you improve your prospects for obtaining personal loans or credit cards & credit card loans in the future.
In summary, while a low credit score may not necessarily hinder your job search, it’s essential to maintain a good credit score to maximize your opportunities. Follow these five key practices to enhance your creditworthiness and CIBIL score:
- Prioritize a Strong Repayment History
- Reduce Your Debt Burden
- Avoid New Credit Applications
- Regularly Monitor Your Credit Report
- Settle All Outstanding Debts promptly.
