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HOW TO IMPROVE YOUR CIBIL TO APPLY FOR LOAN?


Credit score is a numeric calculation of the borrower’s eligibility regarding approval of loan. Every financial and lending institution often asks for your creditworthiness for the better judgement of the person who is seeking loan from them. Your credit history plays a major role in country’s economical structure and helps loan seekers in better ways in getting financial aid easily and faster.

However, credit score is calculated by credit bureau in which several factor plays vital to analyze a credit history of an individual when they "Apply For Loan". Such factors include your payment history, existing loans, credit card out standings and increased credit limits etc. Some of your mistakes may hit your score negatively but here, we are discussing few parameters which can help you to improve your CIBIL score:

  • Always track your payment history: A payment history plays a crucial role in calculation of score as well as has a vital role in affecting your credit score in increasing and decreasing manner. One must keep in mind that defaults on EMIs or untimely payments of your credit card bills can adversely affect your CIBIL score. Therefore, make timely payments and pay your EMIs as per fixed schedule.
  • Keep an eye on unsecured loans: Well, multiple numbers of unsecured loans such as Personal loan can also be a negative factor in evaluating your score and reducing it drastically. It is because high number of unsecured loans reflects greater risks. So, maintain a fair number of unsecured and secured loans to fulfill your monetary needs and repay it on time. It will help you to have a high credit score.
  • Never exceed credit limit: Nowadays, this is a major factor for calculating your CIBIL as increasing the card limit can affect your creditworthiness by indicating the burden you holding regarding repayment. Always keep your credit utilization to 30% of total expenditure and if your utilization is high then try to minimize it because more will be the debt burden the more will lender feel uncomfortable while sanctioning a loan.
  • Don’t avail multiple loans: Never keep a high number of credit cards, multiple loans as it may imbibe a sense of risk among your lender and thus every lender you chose tend to read your loan application carefully and the chances of getting loan approval becomes lesser. Hence, keep a clear record of repaying your existing loans and all credit card bills.
  • Always check mistakes in your credit report: Before you "Apply For Loan Online" the first and foremost step towards it to know your credit report if there are any mistakes. Sometimes, there may be some data amiss, it may contain some errors and you can easily raise a dispute at CIBIL. Keep an eye on your credit report and stay updated about it.

Hence, these are some factors which play a critical role in the calculation of your credit score and therefore one need to know the inaccuracies in better way to strategize your plan to improve your credit score for availing any kind of loan to fulfill your needs and requirements.


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