How To Maintain Your CIBIL Score After Job Loss

If you are here reading this blog, we truly empathize with you. Losing your job is an unfortunate event that can cause a lot of distress. As hard as it may be, the need of the hour is to keep going so that your financial planning stays on track. 

To start with baby steps, ensure maintaining your credit score during this testing time. Even though job loss does not bring it down, how you handle the situation definitely can. Here are some tips to keep those three digits in check.

Check Credit Report

The credit report is a detailed overview of your entire credit behavior. Studying your credit history may help you keep track of your expenses and analyze your next financing options. You can also use this report to find any discrepancies or credit activities in your name that you may not be aware of. 

This is something every person must do at regular intervals. So if you haven’t taken a look at your credit report for a long time, start there. See where you stand and then plan the next steps accordingly. 

Negotiate With Lenders

If you have been consistent with your bill payments in the past, your lenders would likely make some leeway for you now. Approach your lenders and credit card issuers to explain the situation you are in. In most cases, they will understand and defer your due dates. This way your overdue won’t show on your credit report or hurt your credit score.

Make Timely Payments

It’s hard to be punctual with payments after a dip in your income. But once you negotiate the due dates with your lender, try to stick to those deadlines. One miss and it can become a never-ending cycle of frequently missed payments. This will not only increase your interest payments but also tumble your CIBIL score. Remember, not just missed deadlines but also the period for which your payments remain overdue hurts your scores.

Avoid New Lines of Credit

If you are in very dire need of cash, try borrowing from your friends or family. Avoid seeking new loans or credit cards as too many applications can make you appear desperate. Also, every request would lead to a hard inquiry and push down your credit score even further.

Keep Your Credit Utilisation Ratio in Check

Your credit utilization ratio plays a substantial role in determining your credit score. It is a ratio of all your availed credit versus the total credit limit available to you. So if you have any extra savings, use them to clear off your debts. This will not only reduce your interest payments but will also get you brownie points for being responsible with your money.

Final Word

Nowadays, many corporations in India, especially those in the finance sector, have started taking your CIBIL score into consideration before offering you a job. So if you ruin it before landing another job, it could hinder your job hunt as well. The present times are quite uncertain and job loss is a bitter pill that we have no option but to swallow. 

If you need guidance to manage your CIBIL score, sign up with FutureLift today.