In today’s time, whether to buy a house or teach children in good school-college, people need a bank loan for some work. But many times it happens that despite having good salary, banks refuse to give loans and reject the loan application. The biggest reason behind this is CIBIL score or credit score. If it is bad then it becomes difficult to get a loan and if it is good then the bank gives its approved on the application quickly. If your CIBIL score is bad and you are having trouble getting a loan, do not worry, you can improve it by adopting some tips …
Sibal score above 700 is good
If you need a loan and many banks are reluctant to give you a loan, first check your CIBIL score, maybe it is bad. This is a figure that shows the bank’s ability to repay your loan and factors such as delay in repaying the loan. The importance of CIBIL score in the loan can be understood in such a way that the more and better it is, the more easily the bank will give a loan. Its standards have also been fixed, under which the credit score of any person is between 300 and 900 points. Banks consider CIBIL score of over 700 to be good (Best CIBIL score), while if your CIBIL score is less than this, then there is a hindrance in the path of getting a loan.
A little intelligence will work
Now let’s talk that if your CIBIL score has deteriorated and has reached much below 700, what to do? So first there is no need to panic, you can fix it by adopting some easy tips and precautions and then no bank will be able to refuse to give you a loan. If someone’s CIBIL score and unknowingly has deteriorated due to financial mistakes and now he wants to improve it, then such people have difficulty in getting any kind of loan and credit card. The bank refuses to give a loan to the customer as soon as the CIBIL score is checked.
What options do such people have?
To improve CIBIL, first pay the loan or EMI running on time. What to do if no loan or EMI is running? The answer is that first of all when you shop online, choose EMI option and repay EMI on time. In addition, you can also see the option of paying now, later paying, it also gradually improves CIBIL. If you fill petrol, take a petrol card and pay it on time. Get your mobile bill posted and pay the bill before the last date, this is a tried option. When you continue to pay the transactions correctly for a few months, you will gradually see improvement in your CIBIL score. For this, you will neither have to visit any office nor will you have to spend a large amount anywhere. You will start getting better results in a year and then in a few years you can also take loans from big banks, because small transactions also affect CIBIL. Also, take a loan based on FD and repay it on time.
So that your CIBIL is never spoiled
Remove EMI on time: Paying your dues on time is the most important step to improve the CIBIL score. In such a situation, if you have already taken a loan (home loan, personal loan, auto loan) or you have a credit card loan, then repay its EMI on time, do not let it be late.
Caution in the use of credit cards: In today’s time, the use of credit cards and its number of users has increased considerably and many banks are attracting customers by promising new offers. While this credit card has become a means for people to meet its economic needs, it also has some side effects. One of these is also associated with the CIBIL score. In such a situation, you have to use your credit limit carefully and try not to use the entire limit. Unless there is too much or emergency need, use only 30-40 percent of the fixed limit, so that you do not face any problem in repaying it.
First repay the old loan: If you already have a loan, give priority to repaying the old loan before applying for a new loan. It is often seen that people take several loans simultaneously and then face difficulties in repaying them. Or it may also happen that they bounce due to some unexpected expenses. This is also very bad for your financial health as well as your CIBIL score. Therefore, repaying the old loan will also reduce the share of debt in your income and the way to get a new loan will also be clear.
Take the loan as much as you can. With all the measures mentioned above, it is important to remember another important thing. That is, to maintain the CIBIL score, take the same loan from the bank or other financial institution as you can easily pay and do not allow the payment bounce. Actually, Funda is clear that if you take more loans than your capacity and for some reason negligence in repaying its heavy EMI, then your CIBIL score can get a direct result.
