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| How to Improve Cibil Score or Credit Score? |
Today's topic is how to improve CIBIL scores or credit scores.
What is the CIBIL score?
So the full name of the CIBIL score is Credit Information Bureau (India) Limited. CIBIL score is the measure of your credit. The CIBIL score determines whether or not you can get a loan.
CIBIL is a score, a way of a credit rating. This credit score is run by a company called TransUnion. All the financial corporations or banks share your information with CIBIL and this information is saved under your pan number. So when you go for a loan with any financial corporation, that bank will check your CIBIL score, and based on your CIBIL score, the bank will decide whether to give you a loan or not.
The rating CIBIL score is between 300 to 900 so if your score is 300 then your score is bad and if it is 900 then your score is many times better but if we talk about the average CIBIL score then if your score is 750 it is said to be good.
But if your CIBIL score is NA (no credit activity in the last few years) then there is no need to panic and NH means No credit history. NH means you never took any kind of credit. If NA and NH come in your form, it is not like a problem, it is good for you.
Now find out what factors affect our credit score.
1. Repayment History
Now repayment history includes things like how much time you pay your credit card bill, how much time you paid your old loan or whether your EMI is deducted on time, all this data is available to Cibil every month. Is given in.
If you pay all the bills on time as you know above then your CIBIL score will be good.
2. Credit Utilities
If you have taken out a full loan based on your income, it can affect your credit score.
3. Inquiry
If you are doing more inquiries for a loan, this can also affect your credit score.
All your data is available in CIBIL so CIBIL also knows how often and how much you have applied for a loan in the bank.
4. Credit Mix
Credit Mix offers credit card and personal loans, now both are unsecured loans. We have not given any liability against these two loans. So you have to create a balance between secured and unsecured loans so that your credit score remains good.
how you can check your CIBIL score?
Visit the myscore.cibil.com website and choose the plan according to your needs, then you can check your CIBIL score. (We would like to advise you to check the CIBIL score from the official website and avoid using other free websites.)
Next, we will know when the CIBIL score is used.
How can you increase your CIBIL score?
1. pay dues on time
This means that you have to pay on time wherever you have to pay and if you have the facility of money before time, pay it.
Keep making your payments on time and your CIBIL score will gradually increase.
2. keep your balance low
If you get a credit utility of up to 1 lakh on your credit card, then 30 or 40 thousand is the only way to utilize another after pay.
3. Healthy Credit Mix
means trying to balance secured and unsecured loans in equal proportions and make timely repayments of all these loans.
4. Apply for New Credit in Moderation
This means applying for another loan or credit card after a while.
Now that the bank knows that you are applying for a loan or credit card all over the place, this creates a sense of hesitation, so avoid doing so and this may even increase your CIBIL score.
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