If we look at the standards set by the banks, the credit score of any person is between 300 to 900 points and above 700 is considered good (Best Credit Score).
Loan or debt… a name that everyone wants to avoid, but in today’s time most people may need it at some point or the other. Be it for buying a new house or for child’s education or daughter’s marriage, people approach banks to take loan. But it is not necessary that everyone gets a loan, because CIBIL Score or Credit Score plays a very important role in this process. If it is good, then the bank approves the loan quickly and if it is bad then it becomes difficult to get the loan. If the bank is reluctant to give you a loan, then definitely check your credit score once.
Credit score above 700 is better
It is very important to understand the importance of credit score in loan. The higher your CIBIL, the more easily the bank will give you a loan. Actually, through this data, banks find out that you are capable of repaying the loan taken and will not delay in returning it. That is, it is a factor that gives confidence to banks to give you loan. Generally, if we look at the standards set by the banks, the credit score of any person is between 300 to 900 points and above 700 is considered good (Best Credit Score).
Fix your credit score like this
If your credit score is bad or much below 700, then it is important to improve it. There are some tips, by adopting which you can easily get a loan and the first one is to pay your EMI or dues on time. If you have already taken any loan, like home loan, personal loan or auto loan. Even if it is taken through credit card. Paying it on time will not let your CIBIL score deteriorate. Therefore, the best way to keep your CIBIL in order is not to delay the loan EMI payment and pay it on time.
Use credit limit carefully
The craze of credit cards has increased significantly and it is becoming a major means for people to fulfill their needs. However, it also has many side effects. Talking about the issue of credit score, you should use your credit limit very carefully. Do not utilize the entire credit limit given by the bank, rather use 30-40 percent of this limit if there is no great need.
First repay old loan, then take loan
Taking multiple loans simultaneously can prove to be harmful for you and it directly impacts your credit score. It is often seen that people take several loans at once and then face problems in their payment. But doing so can worsen the condition of your financial health. In such a situation, try that if you want to take a new loan, then first apply after paying off all the old loans.
Take loan only as per need
The most important thing is that to improve your credit rating, you should take as much loan from any bank or financial institution as you can easily repay. Because if you take more loan, the EMI will be higher and if you are negligent in paying it, then it will have a direct impact on your CIBIL score. If the CIBIL score is bad then there will be problems in getting a new loan. Apart from this, it is also important to regularly monitor your credit report, this can help you identify any shortcomings, so that you can make appropriate corrections at the right time.
