How you can improve your Cibil score – Detailed here
If you don’t know what Cibil is or how to improve it to get a loan from banks, we are here to help you with everything that you need to know about Cibil and its process. Let us start with knowing what Cibil means.
What is Cibil?
Cibil, also known as credit score stands for Credit Information Bureau (India) Ltd. It is a three-digit score, ranging from 300-900, which reflects your creditworthiness. It is a key factor for banks or any other lender to decide the eligibility of applicants before approving loans or issuing credit cards. The RBI mandate requires all lenders to check the Cibil score of every loan/credit card applicant before giving a loan to them. If you have a low Cibil score, the bank gets the impression that you may have poor credit management skills.
How to improve Cibil/ Credit score:
1 Make timely payments of EMIs
If you have a loan account running, make sure to pay your EMIs on time as non-payment or delay can lower your credit score. Such things get reflected in your credit history thereby lowering your chances of getting a loan.
2. Low balance
If you are using a credit card and have used it to its upper limit without paying the due amount, it suggests a poor financial condition. This is why banks avoid giving loans to such people. Always, repay a sufficient amount in credit cards to create a good impression.
3. Avoid too many credit cards
It is suggested to have a safe number of credit cards based on your income to keep them well managed. longevity and timely payment of bills of such accounts can increase the Cibil score. It reflects your paying capacity to the lender.
4. Report and resolve inaccuracies
It is possible to have inaccurate information reflected in your credit history. This could happen because of a lack of updates or technical glitches. Report such inaccuracies to your lender and get it resolved to keep your Cibil clean…Read more>>