Most people do not know about CIBIL score, so let’s first get information about this. Credit Information Bureau Limited known as CIBIL is India’s first Credit Information Company that store up and maintaining all payment records of loan and credit cards belongs to individuals and commercial entities. On the basis of these payments records a score ranging from 300 to 900 is created we called it CIBIL Score or Credit Score. Generally credit score that have value 750+ is considered very good. All the banks and NBFC’s give approval to your loan application after checking your CIBIL Score.
Activities that affect the CIBIL score
Bank and NBFC’s use your Credit report to check spending and repayment specimen and determine lending money. If your profile seems to be more at risk then they refuse to lend money. Some financial activities that could affect your CIBIL Score are given below.
- Late payments – If you paying your credit card bills and running loan EMI’s after due date then a bad impression on your CIBIL score can be seen due to this. Always pay your bills and EMI’s on or before due date it creates a positive impression on your CIBIL score.
- Soaking credit limits – Nowadays banks give very high credit limits on credit cards to customers. If you are frequently utilizing maximum credit limit then it put a solid negative impact on your CIBIL score.
- Stop using credit cards – If you are not using your credit card from few months then it can be reduce your CIBIL score. Because there is no credit transection present that indicates an inactive file in credit information bureau records.
- Several loan applications – Today you can apply for more than one loan and credit cards. But applying for multiple loans and credit cards at one time while already running a loan and having credit card leads to decrement in CIBIL score.
- Credit amalgam – A perfect blend of credit cards and loans utilization detects as a good CIBIL score. So always use combination of credit cards and loan for financial need don’t use single.
- Loan compromise – If there is any default on old loans then it should reflect in your credit report and put a negative impression on CIBIL score. In future your loan application will not be approved by any bank. So always closed every loan properly and ask for closer latter from your lender.
- Secured Loans – A person with secured loans get positive impression in CIBIL score as compare to unsecured loan users. Because Home Loan, Car Loan, Loan Against Property comes under secured loans and a long tenure is associated with these loans, if you ensuring timely payment then your CIBIL score can be improved definitely.
Now you can improve your civil score by using the information given above. For taking instant personal loan download our mobile app. Finheal Capital – Where Dreams Get Real.