What is CIBIL  Score ? | How to Improve CIBIL Score ?

Credit card

What is CIBIL  Score ?

It is  a credit score issued by credit rating agency CIBIL (Credit Information Bureau India Limited). All the banks & NBFCs are their member . This will help its member to give loan and credit card to people with better credit score .

CIBIL  Score is a three digit number between 300 to 900 . Higher is the number better is the CIBIL Score . Anyone having CIBIL  Score greater than 700 will be considered good .

When anyone apply for loan or credit card , the loan provider check his credit score before approving any loan . If one has low CIBIL Score then you may improve it .

Let me tell you how to improve your CIBIL  Score :   

#1. Never delayed your Payments:

As delayed payments damages you CIBIL  Score much more so never delayed your credit card payments , loan EMI etc. Always pay on time to maintain your CIBIL Score . If you are using credit card or you have taken any loan e.g. home loan , car loan etc. always ensure that you pay loan EMIs , credit card bill on time , otherwise  this will hamper your credit score – so don’t miss it .

#2. Don’t borrow if no need :

As now a days , getting loan is much easier than before so you should not take borrow more than your paying capability . As higher will be the borrowed amount higher will be EMIs . So never borrow the amount more than you need . If you are going to take loan you should select loan tenure such that you may easily pay your monthly instalments . This is the best way to improve your CIBIL Score .

#3. Be careful about your credit card :

If you are using any credit card then you should be careful about using it . Don’t misuse this type of financial tools . You should only use your credit card when you have actually needed . Needless to say , ultimately you have to pay your credit card bill which you have already spent . Be aware that interest rate of credit card is very high and if you do not pay it on time it will damage your CIBIL Score .

#4. Don’t be credit hungry :

As you should know that CIBIL agency maintain your credit information , bank & credit card providers see that how many times your report has been accessed . You should avoid multiple applications within short span of time . Credit hungry behaviour will damage your CIBIL Score , so you have to avoid it .

#5. Check your CIBIL Score :

To check your CIBIL Score you may visit on CIBIL website and on follow the instructions given there & you may check your CIBIL Score . If there are any error in your CIBIL  Score you may fill a dispute resolution form on this website to resolve the issue .