Best Credit Score: Good Cibil Score important for Bank Loan know which Credit Score is good and how to increase this tutc
Best Credit Score: In today’s time, most people have the need to take a loan at some point or the other, whether it is for buying a new house or for their child’s education or marriage. In such situations, people turn to banks and apply for loans. But it is not necessary that all the applicants get the loan approved. Actually, CIBIL score or credit score plays an important role in the bank loan process and this data is the main means of getting your loan approved. If it is correct, then the bank will not take time in giving you the loan. We are telling you how much CIBIL score is correct and how can it be maintained better?
This much CIBIL score, so no tension
CIBIL Score or Credit Score is that important thing, if it is good then the bank approves the loan immediately, but 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 CIBIL score once. The higher your CIBIL, the more easily the bank will give you a loan. CIBIL score above 700 comes in better category.
What does the CIBIL score figure indicate?
Now let us talk about why this CIBIL score is important and how the bank loan is affected through it. So let us tell you that 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 banks, the credit score of any person is between 300 to 900 points and CIBIL score above 700 is considered good (Best Credit Score).
Bad score becomes a hindrance in loan
If your credit score is bad or much below 700, you may face hurdles in getting a loan. In such a situation, it is very important to repair 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.
Be careful while using credit card
The craze of credit cards has increased significantly and it has become a major means for people to fulfill their needs. However, along with its benefits, there are many side effects too. Talking about Cibil Score, you should use your credit limit very carefully. Do not use the entire credit limit given by the bank, rather use 30-40 percent of this limit if there is no great need.
Avoid taking multiple loans at once
Another most important thing to manage your CIBIL score is that you should avoid taking multiple loans simultaneously, this can prove to be harmful for you and it directly impacts your CIBIL 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 apply only after paying off all the old loans.
Take loan only as per need
To improve your credit rating, 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 monitor your credit report regularly, this can help you identify any shortcomings, so that you can make appropriate corrections at the right time.
