CIBIL Score: Apart from not paying the loan, these 4 reasons also worsen the CIBIL score, most people are not aware of this..
Cibil Score - Many people do not understand the importance of CIBIL score, while it is a reflection of your credit history and payment habits. Maintaining a good CIBIL score is very important, but some people do not take it seriously. As a result, their score gets spoiled, due to which they have to face many difficulties like taking debt or loans in the future.
Let us tell you that by having a good CIBIL score, you can easily fulfill your money needs by taking a loan from the bank in the future. On the other hand, if your CIBIL score is bad, then you will not be able to take a loan from the bank in difficult times. In such a situation, every person needs to keep their CIBIL score good. Today we will tell you about such mistakes, which directly affect your CIBIL score. Let us know.
Not paying your bills and EMIs on time-
Not paying your loan EMI and credit card bill on time directly affects your CIBIL score. Always pay on time to maintain a good score.
Not using credit properly-
If you use a credit card, you should keep many things in mind. Do not spend more than your credit card limit. Also, try to always spend only 30 percent of the credit card limit. Excessive use of credit can spoil the CIBIL score.
Closing the credit card or applying repeatedly-
Applying for a credit card repeatedly can also spoil your CIBIL score. On the other hand, if you close your credit card, then your credit utilization ratio increases and your CIBIL score decreases.
Applying for a loan repeatedly-
When you apply for a loan, the bank checks your CIBIL score, which is called a hard inquiry. Applying for a loan repeatedly leads to many such inquiries, which can reduce your CIBIL score.
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