A CIBIL score on the high end of the spectrum gets you a better and quicker loan, personal or otherwise. Especially true while taking a personal loan, an unsecured loan without collateral, a decent CIBIL score is warranted to avail a loan from which you get the most advantages. As a result, it’s important for you to know how to calculate your CIBIL score. Check portals like Finserv MARKETS to find out more on this.
What is a CIBIL Score?
In order to know how to increase CIBIL score if it’s low, you need to know what it is to begin with. A CIBIL score is a numerical indicator (3-digit) of an individual’s financial status. The numeric range is from 300-900. Developed by the Credit Bureau of India under TransUnion CIBIL, it serves as a benchmark of an individual’s overall financial condition. Whether you apply for loans or credit cards, a CIBIL score check is done so that authorities are guaranteed of your creditworthiness. You can check your CIBIL score on the website of CIBIL, and get a summary of your financial records too. In case you run checks on your CIBIL score regularly, you may discover differences, either increases or decreases. If you see that your CIBIL score has gone down, you must make your finances robust once more and raise it.
Ways to Improve your CIBIL Score
What are your chances of getting approval for loans or credit cards, or any other products without a good CIBIL score? Close to none. Getting approvals for finances depends on your credit history. It’s imperative you know how to increase CIBIL score. Here are some handy hints to:
- Make Timely Repayments – You must pay dues you owe, whether credit card bill balances or repayments on loans, in a timely manner, and in full.
- Apply for Less Loans – The more loans you have shows that you depend on lenders to satisfy your monetary requirements. This lowers your score.
- Spend within Limits – In case you have a credit card, make sure you swipe it within your financial means.
- Mix your Loans – Having a mix of loans, like unsecured and secured, ensures you have collateral for some of the loans you take. This can keep your CIBIL score high.
- Give Priority to Old Debt – If you have old debts that warrant repayment, settle those before you take new loans.
- Avoid Joint Accounts – You may hold joint accounts and a joint account holder may be in debt. You, along with your co-holder are accountable for this. This decreases your CIBIL score. Check regularly on this.
Needless to say, when you approach lenders or banks for any financial service or product, they will want to be happy with a CIBIL score of 700-750.
To summarize, you need to have a good CIBIL score if you want any financial product. If you have creditworthiness, you will be guaranteed great products, be it loans or credit cards. Make your way to Finserv MARKETS for a lowdown on CIBIL scores.