New Delhi. Ever since banks have started looking at CIBIL Score for disbursing loans. There are many problems in getting loans to the customers. In such a situation, the question arises that why the CIBIL score of the customer has become so important for the banks.
CIBIL Score is the number or rating that shows how serious you are in paying off your debt or fulfilling other financial responsibilities. If you do not pay the credit card bill or other debt on time, then your CIBIL score is directly affected. On seeing a bad CIBIL score, banks refuse to give loans or increase interest rates. We are telling you 5 surefire ways to make an excellent CIBIL score.
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Keep credit utilization ratio low
Companies pay maximum attention to your credit utilization ratio. This means that how much of the credit limit you get is used. Companies consider the one maintaining the ratio up to 30 percent better. If you use 50% or more, then it shows that you are dependent on debt to meet your expenses.
Make it a habit to pay on time and in full
Make a habit of paying your phone, water, electricity, credit card bill or any other kind of liability on time. Also, try to pay in full, because by paying the minimum amount, you will get rid of it immediately, but in the future it will not only make your loan expensive but can also spoil the CIBIL score.
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Keep an eye on joint account also
If you have any joint account running then keep an eye on it too. Lest your co-account holders do not pay any dues on time and you default. This can also spoil your CIBIL score.
Review credit history thrice a year
You should keep a constant watch on your CIBIL report and review it every 4 months. By looking at the credit history, you will be able to know that all the payment records are being maintained equally. If you have closed any account or card, then check that too.
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Do not apply for loan in multiple places at once
If you want to get a new credit card or are thinking of taking a loan, then do not apply in many places at once. This has a bad effect on your CIBIL score. Also, you should not check your CIBIL score again and again. This makes companies feel that you are in doubt about your financial stability.
Tags: bank loan, credit card
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