CIBIL score alone decides what kind of offer the bank will give you. This also decides the amount you get, if the score is low then it is possible that you will have to pay a higher interest rate or the bank will approve a much lower amount than your demand.
Whenever a person applies for a loan from a bank or financial institution, his CIBIL score is checked first. CIBIL score is a 3-digit number that indicates the customer’s record of taking loans and repaying them on time. CIBIL score alone decides what kind of offer the bank will give you. This also decides the amount you get, if the score is low then it is possible that you will have to pay a higher interest rate or the bank will approve a much lower amount than your demand. In some cases, loan is even refused due to low score. At the same time, due to high CIBIL score, big amount is offered at cheap interest. That is, for a loan, it is necessary for the CIBIL score to remain at high levels. Bank of Baroda in one of its blogs has suggested such tips to the common people by which you can keep your CIBIL score high.
Be cautious about payment of loan or EMI
The most effective way to keep the CIBIL score high is to be cautious about the payment of loan or EMI, many times it happens that people have money in their account but due to some reason they are not able to pay on time. It is better that you take advantage of options like auto debit, auto pay so that the loan is disbursed from your account on a fixed date.
Do not take multiple loans at once
Try to take only one or two loans at a time. If you have a big loan going on, then stopping other unnecessary expenses is good for both your pocket and your CIBIL score. Running multiple loans indicates that the financial condition of the customer is not strong. This affects the CIBIL score. In such a situation, try to take another loan only after eliminating one loan.
Focus on secured loans
If you need money and have already converted credit card bills into EMIs, then it would be better to take a gold loan instead of a personal loan. Actually, in case of multiple loans, your score depends on the number of secured loans in it. Gold loan is considered a secured loan and it will not put pressure on your CIBIL score.
Don’t exceed your credit limit
A limit is given in the credit card which is decided on the basis of your ability to repay the loan. That means the bank tells you your limit through this. In such a situation, to win the trust of the bank, it would be better that you always remain below this limit. So that the bank sees you as a disciplined customer in terms of spending, this will help in increasing your CIBIL score.
Keep checking your credit report
Most customers get to know their CIBIL score when they apply for a loan. However, many times after repaying the loan, due to system error, its effect is not visible on the score or it is visible after some time. In such a situation, keep checking your CIBIL score from time to time and after repaying a loan, apply for a new loan only when you feel that your CIBIL score has improved due to this payment. In case of any doubt, you can contact the previous bank whose loan you have repaid.
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