Cibil Score is a critical factor in all aspects of your credit. It plays a crucial role in deciding your eligibility for loan and credit card along with determining the maximum loan amount or credit limit as well. A credit score is expressed in the form of a three-digit number ranging between 300-900.
Apart from its high importance in the credit segment, there are some facts about the credit score that you might not have heard before:
- Too much of unsecured loans bring your credit score down. It is mainly because of the very nature of unsecured loans that there is no backup security against them.
- To many credit inquiries in a short period also take a toll on your credit score. This is because each credit inquiry leads to a hard pull of credit report by the lender, which costs certain points to your credit score
- Opting for settlement after you have missed multiple payments, also tanks your credit score. Writing off the outstanding balance by paying 40-60% of its amount seems attractive from the outside, but it affects your negative score negatively for the longest period of time. Continue Reading :
Continue Reading: Strange but True facts related to Cibil Score
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