CIBIL is India’s first Credit Information Company or Credit Bureau. They maintains records of all credit-related activity of individuals and companies including loans and credit cards.
These credit related activities details will be provided by financial institutions or banks on monthly basis. After receiving of these data Cibil provides credit report or credit score. Based on the credit score , customer's will get credit facilities like loans , credit cards.
You can improve your Credit Score by taking care a good credit history. You can follow these below points and improve history.
1. Pay your EMI or dues on time : If you have taken any loans or credit card then pay on time to avoid to harm your credit history.
2. Use low Credit Cards limit - If you are using credit card then use lower limit as you can because of higher limit utilization cause lower score & lower limit utilization cause higher score. If you will use more than 30-35% of total availing credit limit than its affects your credit score.
3. Good score to get credit facility - Most of the lenders are funding to customers whose cibil score is more than 750 and even gives benefits in rate of interest. Even you will get loan on lower score less then 650 but you will not get good rate of interest and it effects on higher monthly EMI so for good score you have to keep repayment regularly.
4. Don't do regular credit inquiry - if you will do regular loan or credit card inquiry that will reflect in your credit report. when you applied for loan or credit cards but your application has rejected then don't intimidate apply with another lender because of rejection of your previous application details was updated in cibil report and when you applied again then its will reflect to another lender and it cause another application so just wait till good cibil score.
5. Do not settle any loan - You should not settle any loan because it affect your cibil score.when you avail the loan but you are not capacity to pay that loan completely then you not pay complete amount as actual then loan will close by lenders but they reflect this account settled in cibil and it shows negative and it affects your credit score.
6. Do not take many loans - When you taking loan there are two types loan secured & unsecured when you will take many unsecured loan then lenders see it as negative & it cause to decline your loan application so you can do to avoid such incidents take loans both as secured loans like car or Home loans & unsecured like personal loan or credit cards.
7. Check regularly your credit report - You should keep eye on your credit report time to time so that you can track that what's going on with your credit record.
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