CIBIL score is an important concept for those who are on loan or use credit cards. To understand the concept of CIBIL you have to read this post very carefully and till the end.
So, first of all, do we know what is CIBIL score? If not then read it below.
What is CIBIL Score in simple terms?
It is a three-digit score according to your credit history. CIBIL score is derived from your CIBIL report or Credit Information Report (CIR). It is basically based on your payments to loans and credits. If you pay on time or before then your credit score should be good. A good score has lots of benefits which we discuss in the further sections. A score of more than 700 is considered good. To check your score click here.
How to maintain and improve CIBIL score?
CIBIL score is a very important factor when you are a regular customer of loans and credits from banks and financial institutions. You have to understand and took care of some points to improve and maintain your CIBIL score.
- There should be a balance between secured and unsecured loans.
- Apply for only required credit cards and loan applications. An increase in the number of loan applications or credit cards can lower your credit score.
- Increase credit limit when it is necessary.
- Do not stand with a loan for a long time instead pay your EMI regularly and clear your loan if you have money.
- Pay your dues on time and do not default any payment. You can use services like auto-debit and mandates for your credit and loan payments.
- Always keep your eyes on your expenses and pay-outs to maintain your score.
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