Credit card
How to Improve Cibil Score: If you have never taken a credit card or you have a new job or you are unemployed, then your credit score may be very low. In such a situation, it will be very difficult for banks to give you a loan. Banks and NBFCs check their credit score before giving loans to the customer. Credit score shows whether the customer will be able to repair the loan. In such a situation, if you are going to take a loan, then your credit score must be good. Today we will give you some tips from which you can increase your credit score.
How much is the credit score?
The credit score is between 300 and 900. Transonian CIBIL is one of the four credit bureau making credit score reports in India. The more the CIBIL score or credit score is close to 900, the better it is considered better. The score between 300 and 549 is considered to be the worst. Similarly, the score between 550 and 700 is considered fine.
Do not take many loans together
Try to keep the number of loans taken over a fixed period. To prevent the CIBIL score from decreasing, pay one loan and then take another. If you take several loans simultaneously, it will show that you are stuck in a cycle where you do not have enough money. The result will be that your CIBIL score will be reduced even more. At the same time, if you take a loan and repay it successfully, then your credit score will increase even more.
Fill on time EMI
Your outstanding loan repayment can have a great impact on your credit score. In such a situation, you need to maintain discipline at the time of EMI payment. You have to pay a fine in EMI payment and your credit score decreases.
Keep old credit cards on also
If you have old credit cards, you should maintain them as long as you can pay your bills on time. This will help you create a solid and tall credit history, which will help you increase and maintain a good credit score in the future.
Customize credit limit
Your credit use ratio has a significant impact on your credit score. The more you will be able to ban your credit use according to the limit, the better it will be for your credit score. It has an adverse effect when it reaches the limit as it reduces your credit score. One way to deal with this is to contact your bank and customize your credit limit based on your expenses.
Take a long -term loan
Keep in mind that whenever you take a loan, try to choose a long period for the repayment. This will ensure that your EMI is reduced so that you can pay on time. When you do not delay or miss EMI, your credit score will be better.
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