Buying a house, is a personal need or taking a new car, whenever you apply for a loan, one thing matters the most – your Cibil ScoreIt shows your 3 -digit score (between 300 and 900) your ‘financial credibility’, that is, your ability and trust to repay the loan.
Banks decide on the basis of this score whether you have to give a loan or not, and at what interest rate. Your score your old loan and credit card habits (Credit History – Credit History), How much you use your credit limit (Credit usage ratio), And other such financial transactions are made. Simply means – good CIBIL score means better chances of getting loan and better conditions!
A good CIBIL score (usually 750 or more) Being not only increases the hope of getting loan and credit card easily, but you low interest rates You can also get the benefit, which can save you a lot. So let’s know, two most important and effective ways to improve CIBIL score:
1. Pay the bill and EMI on time, on time!
This is the biggest hero of the CIBIL score! Your CIBIL score is almost a record of paying your old payment 35% The part decides. Payment on time shows how responsible you are in terms of money and the bank can trust you.
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Make a confirmed habit: EMI of your credit card bill and loan always from the last date (Due Date) First Get into the habit of repaying. A single payment may have a bad effect on the missing score.
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Use auto-pee: Is it a habit of forgetting? So from your bank account Auto-Pay Set it. This will automatically deduct money on a date and end the tension of payment missing.
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Talk if you have a problem: If you feel that you will not be able to pay on time, do not sit silent. Contact your bank or loan company before the date and tell your position. They may give you a solution or some time. This can avoid becoming a defaulter, which is very bad for the score.
2. Use credit limit carefully (keep curry low)
This is called Credit Utilization Ratio – CurIn easy language, this means that you get the total credit limit (mixed with all credit cards), what percentage of it are you using. Also a big factor in fixing the score (close 30%) Is.
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30% rule: Try to try your total credit limit Do not use more than 30%That is, if the limit of all your cards is ₹ 1 lakh, then try not to exceed ₹ 30,000 at any time. It seems that you are not very dependent on credit.
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What to do if the expenses are more ?: If you have more expenses and you often use more than 30% of your limit (even if you pay the entire bill every month), it can also temporarily affect your score. In such a situation, you can request your bank to increase your credit limit. If the limit is high, then at the same expense your curry will be reduced automatically. But careful! Increasing limit does not mean that you also increase the expenditure. It is important to maintain discipline.
By paying attention to these two basic things – that is, proper use of timely payment and credit – you can take a big step towards improving your CIBIL score, which will increase the chances of getting better loan offers in future.
The post requires loan at low interest? These are the 2 most effective ways to improve your CIBIL score! First appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
