Cibil Score: Today credit score (CIBIL score) has become very important for any person. It plays a big role in deciding the interest rate of the loan. Apart from this, this score also decides how much loan can be availed. In such a situation, it becomes necessary to keep checking your CIBIL score from time to time and keep it good. According to the credit score body CIBIL, a credit score can range between 300-900 and generally a score above 750 is considered good. Those whose score is more than 750, they get the loan quickly and easily at low rates. In such a situation, if this score goes below 750, you should adopt ways to improve it. You can also adopt these methods to maintain your credit score above 750.
If the credit score is good then loan is easily available, know how it is prepared, if there is no score then what does it mean?
In these ways, you can improve your Cibil Score
- Take care of the deadline of monthly installment: If you have taken any loan for home or car, then never forget the last date of EMI. Apart from this, never miss the deadline for the payment of your credit card bill. Missing them can have a negative impact on the credit score.
- Keep in mind the utilization rate: Utilization rate refers to the extent to which you use the credit limit that you have got. Generally, those whose credit utilization rate is less than 30-40 per cent, they get loans easily. Think of it in such a way that your loan limit is Rs 1 lakh and you have taken a loan of 30 thousand, then the utilization rate will be 30 percent. Keep in mind that if you have more than one credit card, then the utilization rate is calculated according to the limit of each.
- Do not increase card limit repeatedly: Usually people increase the credit card limit due to the high spending in a month. Due to rising expenses, the effect of increasing the limit frequently also affects the credit score. To maintain a good credit score, it is important to balance your spending instead of increasing your limit frequently.
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- Negative impact of settlement instead of full loan repayment: All the old loans are mentioned in the credit history. If you have repaid all the old loans then the credit score will be better but if you have settled it on the contrary then it has a negative impact. Loan closure means that you have paid all the loan installments whereas loan settlement means that the loan recovery agent has waived off the remaining loan.
- If there is no credit history, then earning and repayment capacity plays a big role: Those who have ever taken a loan have a credit history and on the basis of this further loan applications are considered. However, if you have never taken a loan before, then in the absence of credit history, it should not be assumed that the loan will be easily available. Instead, financial institutions decide on loan applications based on earnings and repayment capacity.
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