Reply To: Ask the Expert: Dr. Jyoti Gogte

Jyoti Gogte
16 Feb 2022 @ 12:48pm

The time taken to improve the CIBIL™ score can normally be around 4-12 months, depending on your consistency in reflecting good credit behaviour.

Your credit score will improve by paying off your dues and loans, credit card bills

Few tips to build a business credit history .
1. Get a copy of your credit report
2. Identify the negative accounts – Items to focus on – Collection accounts, Late payments, Credit inquiries
3. Dispute the negative items with the credit bureaus
4. There are three ways to dispute accounts your credit report:
• Online
• By phone
• By mail
• Get late payments removed
5. Dispute Credit Inquiries
6. Pay down your credit card balances – Make sure that you pay at least the minimum balance
due on time, Pay down your credit card balances to keep your overall credit use low, Don’t
close old credit card accounts or apply for too many new ones
7. How your credit score is calculated
• Payment History – 35% –includes on-time payments, late payments, account status, and collection accounts. Late payments negatively affect your score for 36 months.
• Credit Utilization Ratio – 30% – The total amount of debt you have includes car loans, mortgages, credit card balances, and any other loan. Collection accounts that have been charged off aren’t included.
• Length of credit history – 15% –includes the average age of your current open accounts. Keep revolving accounts such as credit cards and lines of credit open for as long as possible.
• New Accounts – 10% – This is made of credit inquires and recently open credit accounts. The more credit inquires you have in the last 24 months; the lower your score will be. The good news is that after 24 months, the inquiry drops off your report and no longer affects your FICO credit score.
• Credit mix – 10% – The different types of credit accounts you have impacted your score.
8. It is not good to have five credit cards open and nothing else.
9. If you have credit cards, student loans, a mortgage, a personal loan, an auto loan, it shows credit mix diversity.
10. What is Considered Good Credit?
A good credit score is generally anything above 720.
A bad credit score is usually anything below 620.
Your score will get there over time as long as you have multiple credit lines open and you stay on top of your payments.
720+ = Excellent
680-719 = Good
620-679 =
Fair 580-619 =
Poor 579 and
lower = Terrible