CIBIL score is a three-digit number summarizing your credit history. Financial institutions check this score to gauge your creditworthiness for loan approval.
What is a CIBIL Score?
A high CIBIL score can help you to get:
– Quick loan approval
– Larger loan amount approval
– Longer loan tenure
– Reduced interest rate
Benefits of Having a High CIBIL Score
Want to Boost your Credit Score? Here are Some Tips to Help you!
Timely bills and EMI payments will boost your credit score and save you from late payment penalties.
Pay your Bills on Time
The major benefit of opting for a longer loan tenure is smaller, more manageable EMIs. This will reduce your chances of defaulting.
Opt for a Longer Tenure
Credit Utilization Ratio (CUR) is the credit you've taken divided by the total credit available. It’s advisable to use less than 30% of the credit limit.
Limit your Credit Utilization Ratio
Multiple loans can portray you as a credit-dependent individual. Consider repaying your ongoing loans and then applying for a new one.
Avoid Taking Multiple Loans at a Time
Your credit score may be low because of some error in the report. Check your credit report regularly and keep it updated.