How to improve cibil score (credit score) : 10 ways to improve it
Whenever you go to bank and ask for loan , the first thing which bankers check is your credit score (cibil). It shows how trustable person you are , are yo able to repay loan easily or not do you have default e.m.i. . These all things can be checked on one tap I.e. cibil score
What is cibil ?
Cibil stands for ‘credit information india limited’ it is the primary measure to check how trustworthy person you are on scoring scaleof a 300 -900 . It defines how much loan you will get at what rate of interest.
History of cibil
Cibil was established in 2000, but it started function in 2002 – 2004, it is Indian first risk scoring method for banks and finance instith
How to improve credit score
• Don’t Use of more than 30% of your credit card limit
If you will use more than 30% of your credit level on month basis thus reflects that you are dependent on loan and affects the credit score directly
• Don’t close your old credit card
Closing a credit card delete all your credit history ,timely transcaction and many more. If you can bear annual maintenance charge then don’t go for put it down.
• Never delay your payment
Try to pay all your dues within the given time frame otherwise,it will result in loosing some credit points at the end of month.
• Don’t apply for loan unless not required
Applying for loans randomly suspects your potential to pay back loan and it creates a negative view point against you.
• Borrowing loan for a long term improves cibil
A loan for long term and paying EMI on time , projects that you have the capability to repay loans for along tenure of times,it makes your cibil score healthy.
• Loan settlement
When you can’t repay the loan then banks file a case against you in court this pressurises you to repay the loan if you can’t repay loan then banks offers you to pay less amount than The actual this Is called loan settlement.but if you do so then it will takes year to build a healthy credit score and be ready for it.
• Must take NOC after completion of loan
don’t even left 10 rupees as loan ,it can destroy your cibil . Ao take no objection certificate after completion of loan tenure.
• Avoid taking insecure loan
Taking a secure loan takes time but it is worth it , if you take a secure loan ,it becomes easy for bank to recover amount of loan back . Eg. Gold loan , home loan can be recovered through auctioning .
• Approach NBFCs for credit
Approaching NBFCs improves credit score , it gives a positive result in credit score on payments on time.
• Issuing credit card for small finance bank.
It is relatively easy to use credit card issued from small finance bank eg. BAJAJ FINSERV CARDS.
Credit score chart:
Poor Average Good Excellent
300-550 550-650 650-750 750-90
• If your score is between 300 -550 it is very poor ,you won’t get a loan anyhow.
• Between 550-650there are chances ,but you will get it on a very high rate of interest
• In good segment you will get but on little high R.O.i. less than average category.
• In excellent category if you are above 800 bank will call you and offer you a very little interest.
These are the benefit of cibil score One must try to maintain it within 740+ this will provide you with a positive financial reputation take these dteps and you are set to go a long way. one can check it from onescore app. For more do visit moneyinspires.