Best tips to improve your CIBIL score to get easy Loan Approval
The CIBIL score, also known as the credit score, is an estimate of the creditworthiness of an individual. In India, the Credit Information Bureau (India) Limited (CIBIL) is one of the leading credit bureaus to provide this score. Here are the basics to understand about CIBIL score.
What is Credit Score?
Range:CIBIL scores range from 300 to 900. Higher scores indicate better creditworthiness.
Components: Calculated based on a person’s credit history, including debt and credit card Repayment Behaviour.
Importance of CIBIL score:
Credit approval: Lenders use the CIBIL score to assess the risk of lending to an individual. Higher scores increase the chances of loan approval.
Interest Rates: A higher CIBIL score can help in getting loans at better interest rates.
Credit card approval: Just like loans, credit card issuers also check CIBIL Score before approving the card application.
Factors affecting CIBIL score:
Payment history: Timely payment of EMIs and credit card bills positively impacts the score.
Credit Utilization Ratio: The ratio of credit utilization to total available credit. Used sparingly is fine.
Long Credit History: A long credit history can help improve scores.
Additional loans: Applying for additional loans frequently can Have Negative Impact on your score.
How to Improve your CIBIL score:
Paying bills on time: Make sure you pay all loan EMIs and credit card bills on time.
Monitor credit reports: Review your credit reports regularly for any discrepancies and resolve them.
Limit the use of credit: Keep the amount of credit you use low.
Avoid too many loan applications: Asking too many loan inquiries can negatively affect your score.
Maintain a healthy mix of debt: Having a balance of secured and unsecured debt can help.
How to check your CIBIL score:
Individuals can check their CIBIL scores online through the CIBIL website or other financial management channels. It is advisable to check the score regularly for accuracy and to take corrective action if necessary.
Conclusion:
Understanding and maintaining a good CIBIL score is essential to secure further loans and credit facilities on the right terms. If you need a loan to improve your CIBIL score, contact us today. Our team at Focus Fintech is here to help you find the right financial solution for your needs.
