CIBIL score is the most commonly used factor by Banks and NBFCs to check your eligibility for a loan. Based on the cibil check, the bank will decide whether to give you a loan and related settlements. Thus it is imperative to have a good credit score.
It is indeed hard to bring up the CIBIL score within a short period.
So, you need to have an exact idea regarding those factors that will bring down the CIBIL score.
History of making payments:
Your all payments should be in a systematic manner without any delay, as this helps you in increasing your CIBIL score.
Income-to-debt ratio:
It is necessary to have an excellent income-debt rate as it affects the CIBIL score. So do try to spend your income wisely by controlling your expenses.
Being a guarantor:
A guarantor is responsible for the payment of the debt if the borrower is in a state where he is not able to repay the loan.
Credit card limit utilisation:
Try to limit the use of credit card as it affects the credit score. High credit use means high repayment commitment, so if you have high credits, then your CIBIL score will be impacted severely. So try to avoid this.
Not using credit cards:
Credit card use is viewed by the credit bureau to analyze the credit history of the user. So if you don’t have any credit history, then they would not be able to judge you, and this will bring down the credit score.
Read More : Some Unknown Facts About CIBIL Score.
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