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CIBIL Score Update: Despite earning lakhs, the CIBIL score of these people remains zero, they cannot get loans from anywhere...

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First-time loan takers face many problems. The biggest difficulty comes with credit score (credit score latest updates), because now it is not easy to get loans in banks without a good credit score. Generally, people with good incomes think that banks will easily give them loans considering their income, but it is not so.

Unless your credit score is updated in the banking system, there is a problem in getting a loan. If you have never taken a loan before, your credit score appears to be zero. In such a situation, banks ask you to give loans at higher interest rates. Apart from this, banks also give you a small amount as a loan. In such a situation, first-time loan takers must have a credit score.

Why is a credit score important?

Banks check the loan history of the customer through credit score or CIBIL score. If you have not already taken any loan then your CIBIL score will not increase further. That means your CIBIL score will show zero. In such a situation, only expensive loans will be offered to you in the banking system. Ashwini Rana, an expert in banking matters, says that to get a cheap loan, one should have a CIBIL score of at least 750.

The most difficult thing in getting a personal loan-

If your CIBIL score is zero then no matter what your income is, you will face difficulty in getting a loan from the bank. In this also, the biggest problem comes with personal loans, because banks consider it more unsafe. Home and auto loans have lower interest rates because these loans are taken against an asset that acts as collateral for the bank. Whereas, personal loan completely depends on credit score and income. In such a situation, banks will either not give you a loan on a bad CIBIL or will charge huge interest.

How to improve CIBIL score immediately-

In a case where the customer has not already taken any loan nor used any credit card and his CIBIL is showing zero, then he can make a small FD in any bank.

This work will also be done online because most banks now offer the option to open FD online.

Once the FD is opened, the customer can take a loan against it under the overdraft facility. As soon as you withdraw money under overdraft on your FD, your loan will start in the banking system. After this, your CIBIL score will be updated in two or three weeks, which can be 750 points or above. In this way, through a better CIBIL score, you can get a personal loan at low interest.

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