Easy steps to improve your CIBIL Score
Easily Improve your CIBIL score with Effective methods
Many lenders some time confused about how to improve the CIBIL score. Every lender has different parameters to issue for a specific loan amount. The Reserve Bank of India has ordered that all banks should check the CIBIL score of each loan/credit card applicant at the time of valuation.
What is CIBIL score?
Your CIBIL report keeps track of your past payments on loans and credit cards. Lenders take into account your past behavior with your current behavior to determine your future intentions.
If you have a bad CIBIL score, here are some important tips to improve your CIBIL score free.
CIBIL is one of the leading credit agency in India. It has functioned as a credit information company from Jan 2001.CIBIL score is a three-digit number, ranging from 300 to 900. An individual person with no credit history will have a score of -1. If the credit history is less than 6 months, the score will be zero. It takes time to build up a satisfactory credit score, usually, it takes between 18 to 36 months. Good financial behavior and discipline lenders find in their customers.
Here are some smart tips to improve your CIBIL score
3. Too many unsecured loans
A secure loan that means lander give mortgage loan against the home, auto etc. An unsecured loan means lander give loans to the borrower without any mortgage like personal loan, credit card. So it impacts your CIBIL score as too many unsecured loans may be viewed as a negative effect.
4. Gradually make a good history
Debt is often essential, but the idea of taking a proper type of debt is to use it. Over time, you can create a healthy score that can get you a quick and competitive loan.
5. Secured Credit Card
If a person has a bad score of Ciibil, then getting a secure card from leading banks, prominent banks such as Axis Bank, ICICI Bank, Kotak Mahindra Bank, SBI etc. offer secure credit cards against fixed deposits of the normal amount. When you pay your balance over time, the score of CIBIL grows high.
6. Effect of Big EMI Payment
When someone purchases a large loan, such as a four-wheeler or a part of an apartment or residential land. Pay EMI of your past bigger loans on time will help to improve your track record to pay bigger amounts and thereby get higher CIBIL Score/rating.