Nowadays, in the time of rising inflation, money is required at some time or the other. In such a situation, people often resort to loan or credit cards. But whether the loan will be found or not, and at what interest rate, it depends largely on your ‘CIBIL score’.
A straightforward thing – if your CIBIL score is good, the banks give you a loan at easily and perhaps low interest. But if the score is bad, the risk of rejecting the loan application increases.
The CIBIL score actually shows the habit of repaying your old borrowing – that is, how reliable you are in repaying the loan. Therefore, if you want your CIBIL score to be always correct, then it is very important to take care of some things. Let us know 5 such important things, by adopting which you can maintain your CIBIL score good:
Want to keep your cibil score good? So tie these 5 things tied:
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Bill and EMI? The most important is to repay on time!
This is the first and necessary habit. Be it your credit card bill or EMI of a loan, always pay before or on time. A little delay in payment can be affected on your CIBIL score. Do not take it lightly at all! -
Many loans together? Just care!
If you are already paying a loan, then try to take another loan only after paying it. Taking many loans at the same time will increase the burden of EMI on you. If you are not able to repay EMI on time, then not only will you increase the debt burden on you, but your CIBIL score will also deteriorate badly. -
Use of credit card? Do thoughtfully!
Credit card is a feature, but it should be used wisely. Avoid using your credit limit indiscriminately. Remember a golden rule – try to use only 30% of your total credit limit. That is, if your limit is ₹ 1 lakh, then keep your dues only around ₹ 30,000. This keeps your score good. -
Repeated credit card limit? not good!
Banks often offer to increase credit card limit. But to increase the limit again and again, especially when you are spending more, it shows that you are probably spending more than your income. This is not a good sign for your score. The limit may increase, but it is more important to control the expenditure and pay the bill on time. -
Being someone’s loan guarantor? Think twice!
If someone is asking you to become their loan guarantee, then say yes very thoughtfully. Becoming a guarantor means that if the person taking the loan is unable to pay the money, then the bank will collect that money from you. Not only this, if that person defaults, then your own CIBIL score will also deteriorate. Therefore, never become a guarantor of someone whose ability to repay the loan.
Keeping these small things in mind, you can not only keep your CIBIL score good, but can also easily get a loan when needed in future.
The post is needed? Know these 5 things before taking a loan, otherwise your cibil score can deteriorate! First appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
