Demystifying CIBIL Score
A credit score shows the credit value of a borrower. So lenders totally depend on credit scores, which is given by the credit bureau, to decide whether the loans should be approved or rejected. Mainly the higher is your credit score, the better will the credit value and there are the chances of your loan application to get approved. We are here to help you demystifying CIBIL Score.
The four major factors that affect the credit score of a person according to CIBIL. They are:
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Late payments:
Keep a note on your EMI (Equal Monthly Installments) cheques pass. Do not miss to pay your payment or delay it. Missed payment gives a negative impression on your credit history and also has a negative impact that most of the money lenders consider being risky for the borrowers.
2. High use of credit:
The balance on your loan can be reducing the overtime payment that has to be made by you. You might be hardworking and making timely payments on your credit cards. While increasing spending your credit cards, it is not necessary that it will have a negative effect on your credit score or increase the balance on the card over time is a hint of an increased repayment burden and we may cause a negative impact on your score.
3. Get a home loan and not credit cards:
Lenders feel good to see people taking up home loans or car loans over an unsecured loan(credit card or personal loan). Home loans and Car Loans give extended life to a credit card, but a personal loan or credit card does not help in the same way. The unsecured loan shows that a person totally depends on the credit which is something that lender scowl up. An unsecured loan is quite expensive so it is better to keep it away from them.
4. Credit eager:
You have just granted the loan. Wait for some time to apply for another loan. The borrower has to wait for a year before applying for another loan. If you have made various applications for a loan or sanctioned, any other facilities related to credit facilities. Credit eager indicates the increased debt burden, and you are also less capable of additional debt or likely to have a negative impact on your score.
So think and walk with Caution. Use your debit card over a credit card. Go for a secured loan over an unsecured loan.
