Cibil Score Tips: If your Cibil Score is bad then don't worry, follow these easy tips, and you will get loan quickly...
Many times some problems arise due to which we become unable to repay the loan amount. Its biggest impact is on taking any type of loan in the future. Banks hesitate to give loans if the credit score is bad. Even if a bank gives a loan, the interest on it is very high. If for some reason your credit score has become bad then you can improve it.
What are credit scores and credit reports?
It is a three-digit number, which ranges between 300 to 900. The higher this number, the better the credit score is considered and the greater the chances of getting a loan. A credit score is also called a CIBIL score. At the same time, the report of records related to any kind of loan transaction and credit card payment from the bank is called a credit report. Apart from your credit score, a credit report contains information about your name, date of birth, address, phone number, job, loan or credit card application, etc. A CIBIL score of 750 or more is considered good. Whereas a score between 300 to 550 is considered bad.
What are the benefits of a good credit score?
If a person's credit score is more than 750 then it is considered good. The higher it is, the greater the chances of getting a loan from the bank.
With a good score, the process of getting a loan approved is quite fast and hassle-free.
If your credit score is very good then the bank may give you a loan at a lower interest rate
Improve credit scores like this
Do not take more than one loan
If your credit score has been affected due to non-payment of a loan installment, then do not take another loan to repay this loan. If its installment is also stopped then the credit score will deteriorate further. Yes, if you want to take a second loan to expand your business, then do it honestly and pay all the loan installments on time.
Pay loan installment on time
If your credit score has deteriorated due to not paying loan installments or credit card bills on time, then start paying them on time. Ask the bank to improve your credit score. Also, assure the bank that now you will make the installment or bill payment on time.
Do not increase credit card limit
If your credit score is affected due to not paying the credit card bill on time, then avoid increasing its limit. This will only increase your expenses and the bill amount may become higher. In such a situation, there may be difficulty in filling it. If the bill has increased then get it converted into EMI. This does not hurt the credit score.
Talk to the bank
If you do not have money to pay the installment or credit card bill, then talk to the bank without delay. The bank may give you some additional time to repay the amount. In such a situation, you can avoid being a defaulter and your credit score will also not get spoiled.
Do not use the full limit of your credit card
Avoid using the full limit of your credit card. It would be better not to use more than 50 percent of the credit card limit. If you face difficulty in paying the bill due to such usage, then it is better to stop using the credit card and get the credit card also closed. With this, you can avoid bad credit score.
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