Better CIBIL Score- If you have ever taken a loan or actively use a credit card, then you must have heard about CIBIL score. Through CIBIL score, the bank or financial institution assesses the loan capacity of the borrower. It can also be said that through CIBIL score, the bank assesses whether the borrower will be able to repay the loan on time or not.
A good CIBIL score is considered to be 750 or more. The higher the CIBIL score, the better it is. Having a good CIBIL score helps you a lot in getting loans and credit cards. At the same time, you also get benefits while taking a loan.
CIBIL can be improved using several methods. Let’s talk about them.
How to improve CIBIL score?
Timely payment of loan and credit card bills- If you have taken any kind of loan or are a credit card user, then ensure that the EMI is paid on time. Also, pay the credit card bill on time.
If you do not pay your credit card bills on time, you will have to pay charges.
Along with this, keep in mind that do not use the full limit of the credit card. Only 30 percent of its limit should be used.
Avoid becoming a defaulter- If you have taken a loan with any family member, friend or any other person, then you should avoid becoming a defaulter in a joint loan. Because if the loan is not repaid on time, you may suffer a huge loss. It can also affect your credit score.
Balance of secured and unsecured loans- Car and home loans are included in secured loans. On the other hand, personal and credit loans are included in unsecured loans. You need to maintain a balance of both of these. This also affects the CIBIL score or credit score. Therefore, it is important to keep all these things in mind while taking a loan.