CIBIL Tips: Apart from EMI bouncing, what other reasons worsen the CIBIL score? Know here..

CIBIL Score Update: Whenever a customer goes to the bank to take a loan, his CIBIL score is checked first. This reveals the entire financial transaction of the customer. A good CIBIL score proves to be better for the customer in many ways, but once the CIBIL score becomes bad, it creates many financial hurdles and one is not able to get a loan (loan EMI rules). Even if a loan is available, it is at expensive interest rates. Therefore, if you want to keep the CIBIL score right, then definitely know about the ways to improve it and the time it takes to get it right.

Reasons for poor CIBIL score-

Whenever the CIBIL score is bad, there are not one but many reasons behind it. The biggest reason is not paying the loan EMI and credit card bill on time after taking a loan or credit card (credit card uses). Apart from this, CIBIL score also gets spoiled by doing loan settlement (loan settlement rules).

This is how the CIBIL score gets spoiled-

CIBIL or credit score also gets spoiled due to not maintaining the Credit Utilization Ratio. Taking a joint loan, and becoming a loan guarantor are also steps that can spoil the CIBIL score. If the joint account holder or any loan borrower does not pay any installment etc. then the CIBIL score of the loan guarantor (Loan Guarantor effects on cibil) can get spoiled.

It takes this much time to increase the CIBIL score-

Once the CIBIL score gets spoiled, it takes a long time to improve it. CIBIL score is also called credit score (how to improve credit score). If you want to improve it, then know that it is very important to be patient in this because it improves after a long process. It takes six months to 1 year for the credit score to improve.

If you have a very low CIBIL score-

If the score is very bad then it takes even more time to improve it. That is why you should maintain your CIBIL score in advance and keep checking it from time to time. This will benefit you that as soon as it falls, you will be alerted and take necessary steps.

Improve your CIBIL score like this -

- Do not delay the loan EMI (loan emi rules for cibil), pay it on time only

- If you have taken a credit card, then keep in mind its maximum spending limit (credit card limit) and never spend more than 30 percent of it.

- Not paying the credit card bill on time also spoils the CIBIL score, so pay it on time.

- Taking unsecured loans repeatedly spoils the CIBIL score, so do not take such loans frequently.

- Becoming a loan guarantor is often costly, do not take this step without thinking.
- Even if you take a joint loan, if the loan is defaulted, the CIBIL score goes down. Therefore, take a joint loan carefully.
- Often settling a loan (loan repayment rules) spoils the CIBIL score, so close it as soon as possible.
- The CIBIL score (Cibil Score News) of a person who never takes a loan is usually zero. Therefore, to build a credit history, take a small loan and repay it on time so that the CIBIL score improves.

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