CIBIL Score: What are the reasons for poor CIBIL score, know its rules..
CIBIL Score News: CIBIL score reveals the transaction history of a person. It is a three-digit number, which ranges from 300 to 900 points. It reveals your eligibility to take a loan. This number is decided based on many things, but do you know that your CIBIL score (Cibil Score ki jaankari) can fall due to minor mistakes? Let us know the reasons for the poor CIBIL score.
On what CIBIL score one gets a loan-
If the CIBIL score (rules of cibil score) is correct, then the person does not have any problem getting a loan and getting a credit card. If your CIBIL score is between 300-500 then it comes in the bad category. On the other hand, if your CIBIL score (range of cibil score) is between 500-650 then it is considered average.
Along with this, if the CIBIL score is between 650-750 then it is considered a good score. It is excellent if the CIBIL score is between 750-900. Along with this, if the CIBIL score of a person is more than 750, he does not have any problem getting a loan or getting a credit card.
Know what are the benefits of the best CIBIL score-
Let us tell you that there are many benefits to having a good CIBIL score. Whenever a bank gives a loan, it checks the CIBIL score of the person before giving the loan. If your CIBIL score is good then you can easily get a cheaper loan. Due to this, many times you can also get a pre-approved loan offer (Good CIBIL score ke fayde) and along with this you also get the facility of an instant loan i.e. money coming into the account in a few minutes.
Know what are the disadvantages of a bad CIBIL score-
While there are advantages to having a good CIBIL score, there are also many disadvantages of having a bad one. If you have a bad CIBIL score, you have to face many disadvantages. Know what are the 5 disadvantages of a bad CIBIL score.
1- There will be trouble in getting a loan
First of all, let us tell you that if your CIBIL score (bad CIBIL score ke nuksan) is bad, then you may have trouble getting a loan from any bank, small finance bank, or NBFC, because if your CIBIL score is bad, then the bank doubts that you may default.
2- Interest rates will also be high
Along with this, if the bank is giving you a loan even after your bad CIBIL score (RBI Rules on Credit Score), then you will get a loan at higher interest rates. When something like this happens, banks try to manage their risk. By giving loans in case of poor CIBIL score, banks think that if the person defaults on the last few EMIs, the bank should not incur any loss. For this, interest rates are kept so high.
3- You will have to pay more premium
If your CIBIL score is poor, then many times insurance companies can also ask for more premium from you, because in such a situation insurance companies feel that you can make more claims. At the same time, many companies can also delay giving insurance.
4- There will be trouble in taking a home-car loan
Due to a poor CIBIL score, you may have trouble getting any loan (kitnme cibil score pr mileage lioan). Just like personal loan, it will be difficult for you to take a home loan or car loan as well. Many times due to this you may also have to pay more interest. Along with this, due to poor CIBIL score, there is also a problem in taking property on lease for business. The company can also ask you to mortgage something in exchange for the loan.
5- Loan will be delayed
If a bank is giving you a loan even due to a poor CIBIL score (cibil score updates), then it will also investigate the documents thoroughly before giving you the loan. If you apply for a gold loan or securities loan due to a poor CIBIL score (loan application process), then there will be a thorough investigation. Even if you mortgage something, the bank will look at you with suspicion and will do a thorough investigation. All this can take a lot of time, due to which you may get a delay in getting a loan.
What mistakes spoil the CIBIL score-
A person should check his CIBIL score from time to time and improve it. Due to many reasons, the CIBIL score becomes poor. Let us know what are the reasons for a poor CIBIL score (kaise khrab hota cibil score).
-Effect on CIBIL score due to missing EMI
If you have taken a loan and you miss its EMI (loan EMI bounce), then it can reduce your CIBIL score. If you miss EMI two or more times or default the loan, then it will have a bad effect on your CIBIL score. In such a situation, no bank will give loan. Every bank will feel that due to a bad CIBIL score, you will never repay its loan, due to which the bank may suffer a loss.
-Maintain the loan
Along with this, taking a big loan also has a bad effect on your CIBIL score. This makes the banks feel that you already have a lot of debt, which is yet to be repaid. In such a situation, if the banks give you more loans, then it may be difficult for you to repay it. This is the reason why people's CIBIL score decreases after taking a home loan.
Do not apply for loan again and again
Many times a person applies for a loan in different banks and takes a loan from the bank from which he gets loan at the lowest interest rate. In such a situation, your CIBIL score will be checked in all the banks in which you have applied for loan and this is a kind of hard inquiry.
When your credit score is checked by any bank or NBFCs, it is called hard inquiry. On the contrary, when you check your own CIBIL score, it is called soft inquiry. Due to hard inquiry, your CIBIL score starts decreasing.
- Use credit card within limit
If you are a credit card user and you make big purchases or make a lot of purchases with credit card, then this can spoil your CIBIL score. This increases the utilization ratio of your credit card, which reduces your CIBIL score. That is why you should use less than 30 percent of your credit card limit, otherwise your CIBIL score may deteriorate.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
