Having multiple credit cards has become common in urban areas, especially in the upper-middle class and upper-class population. Having more than one credit card can cause CIBIL or credit score to deteriorate several times but it is also the reason. According to experts, CIBIL cannot be affected by having multiple cards. However, a reduction in debt repayment may have an impact on making full use of the credit limit.
A CIBIL or credit score is basically a number between 300 and 900, calculated by credit information companies in India. If one’s credit score is above 750, it is considered an excellent and good score and the borrower is considered creditworthy. A score between 650 and 750 is an average and reasonable score and a score below 650, on which it is difficult to get a loan. Applicants with credit scores of 750 and above are generally more likely to get a loan, as they are considered more financially disciplined.
The CIBIL score is evaluated and determined through a complex mathematical formula that is based on several criteria such as credit history, repayment history, usage, number of inquiries and credit mix etc. To maintain these factors can negatively impact the credit score. It is important to monitor the repayment made for the loan where the customer is a joint holder. The customer is equally responsible for making EMI payments on the joint loan and has a direct impact on the credit score.
Note that repair history is one of the important factors in shaping the CIBIL score. It is important to build discipline in relation to the repayment of credit. EMI and credit card dues must be paid before the due date. The customer should create a good credit history, showing different types of credit, short-term or long-term secured track, so that the customer can repay the loan in future.
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Many lenders and online financial markets offer pre-approved loans based on your credit score. Such pre-approved loan or card offers may include benefits such as lower interest rates, better product features and faster processing time.
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