Don't do this while repaying the loan. Cibil may become useless for many years, banks will never tell this!

It has been seen that when people take a loan in the early days of their career, they take it lightly. Missing an EMI or paying late by a few days seems like a minor thing to them. Some people even default on the loan and don't even complain. But do you know that if you do such a thing with the loan, the result is that your CIBIL score gets spoiled? Yes, and the effect of defaulting on any loan is visible on your CIBIL score not for a day or two or a month, but for years.

If you have taken a personal loan and did not repay it on time, then its effect can be seen on your credit score for the next 7 years. In India, credit bureaus like TransUnion CIBIL, CRIF High Mark, Equifax and Experian manage your credit information, which keeps the information of your such default in their system for about 7 years.

It is not that delay in loan payment once means that you will never get a loan again. However, every time you apply for a loan in a bank, it will see this information of your loan default. At the same time, its effect will remain on your CIBIL for 7 years, that is, your CIBIL will not be the best for 7 years, even if it becomes a little better. In such a situation, you can get small loans, but it will be difficult to get a big loan.

CIBIL Score or Credit Score is like your report card in a way, which tells how your repayment history has been in the previous loan. Although this score ranges between 300 to 900, but a CIBIL score of 750 or above is considered good.

If you want to reduce the loss to CIBIL due to the loan, then you have to keep some things in mind. This will gradually improve your CIBIL. Let's know 7 such things.

Repay the outstanding amount as soon as possible. This can improve your future image.

After payment, definitely take a 'No Dues Certificate' from the bank or financial institution.

Check your report from time to time and get it corrected if you find any mistake.

If there is any mistake, immediately file a complaint with the credit bureau and submit the necessary documents.

Applying more often can further lower the credit score.

Take a secured credit card or a small consumer loan and repay it on time so that a good record is created.

Keep a good balance of both secured and unsecured borrowings.

You can improve it by doing transactions in a better way and it gets worse if you make mistakes. While calculating the CIBIL score, companies look at these 5 things.

Whether you have paid your old loan on time or not, it plays the biggest role in the calculation of your credit score. It sees how many payments you made on time, if late then how many times you delayed and also sees how many times you have missed payment or EMI. Its share in the calculation of CIBIL score is about 35 percent.

Apart from this, it is also seen how much credit i.e. loan is available in your name and how much of it you have used. Its share in the calculation of CIBIL score is about 30 percent. So next time while using your credit card, keep in mind that you do not use its full limit, but use only up to 30-40 percent.

This is also a big parameter in the calculation of CIBIL score, which has a share of about 15 percent in the calculation. Credit history means that the longer your loan is, the higher your CIBIL score will be. However, keep in mind that this loan should not be very big. Also, keep in mind that you pay your every EMI on time.

While calculating the CIBIL score, it is also seen how many loans you have and what type they are. It is checked how many are unsecured loans and how many are secured loans. The more secured loans you have, the better will be your CIBIL score. Its share in the calculation is about 10 percent.

The remaining 10 percent in this calculation checks all your loan related activities. It is seen whether you have taken a lot of loans recently, because it means that the loan burden on you will increase. It also checks how many times you have inquired for a loan as it is believed that you may take many loans in the future which will increase your liability significantly.