Whenever you are looking for any Credit card or Loan from any bank or lenders the first thing the bank will look into your Cibil Score pr commonly known as Credit score. It is like a barometer of one's financial health which gives an indication if you can afford a credit facility. Simply means if lenders will lend you money or not.
Cibil Score And Why it's Important
A high Cibil Score means that you are credit worthy and lenders will give you loan and you can also get the loan in low interest rates. If you are getting a Credit Card then you can easily get the card with higher limit and so on.
Similarly a low Cibil score means that you are not that credit worthy and lenders will give you loan but with a higher interest rate because there is a risk associated with someone who is not that credit worthy. It can also happen that lenders will not even give you a loan. So keeping a good Cibil score is very much needed.
Many a times because of financial situation or carelessness we default on payments or skip paying yeh credit card bills which actually impacts our Cibil score and makes it lower. So the best thing to do is to keep your Cibil Score higher by paying your loan payment on time as well paying your credit card bill on time. The ideal or good score should be above 750.
So let's go through some of the important points which can help you to increase your Credit Score. If your Cibili Score is low, this will benefit big time. If you have not taken any loan yet, this will help you to keep your score good in the future.
Pay your Installments on Time
If you have taken a loan, try not to miss your monthly payment at any cost. If you have missed earlier, try to not miss that from now onwards. Because a single payment miss will impact your Cibil Score badly.
If you anticipate that you might miss the payment, then you should inform the lender before hand so that they will not mark it as missed.
Pay Credit Card Bil on Time
Sometimes because of impulse buying we end up buying a lot of things on Credit Card and thus if it goes a certain limit we end up not paying the bill on time. And this adversely affects your Cibil score. Also if you use the Credit card limit regularly to the fullest it might reduce your Cibil Score.
So we have to make sure that we have to spend less from our Credit Card and also pay the bill on time.
Don't take multiple Loans
Taking multiple loans might affect your Cibil Score. This is because lender believes you are totally dependent on the borrowings and might be a defaulted in the future.
You can actually take a bigger loan instead of smaller loans but you should pay your EMI on time.
Think before becoming a Guarantor
Sometimes when your friends or relatives take a loan, they approach you for guarantor but be carefully before becoming one. The problem is if the friends or families doesn't pay the loan on time then your Cibil score will suffer. You might Aldo have to pay the amount. So be careful before signing the papers to be a guarantor.
Keep your old Credit Card Active
Keeping your old credit card active is a good way to boost your Cibil score is you have done all your payment on time. Because that helps the lender to know that your credit history is good.
These are some of the easy methods to boost your Cibil score. Do let me know if you know any thing else.
Posted Using InLeo Alpha
