Kumari Palany & Co

Here are some guidelines for increasing your CIBIL Score!

Posted on: 11/Feb/2023 12:19:13 PM
Credit Information Bureau Limited (CIBIL ) is a credit information company operating in India. It maintains credit files of 600 million In case you indulge excessively in taking loans for various requirements, it will lead to the impression that you are a frequent loan applicant! This will reduce your CIBIL SCORE!

Here are a few aspects to consider for improving your credit score:

For example, if you are earning a monthly salary of Rs. 30000/-, you can take a loan that requires a monthly pigmented (EMI _ Equated Monthly Instalment) of Rs. 14000/-! However, if you take a loan entailing a Monthly Payment of Rs. 2500/-, your CIBIL SCORE will reduce!

There are 2 types of loans – Secured Loans and Unsecured Loans.

Secured loans include housing loans and vehicle Loans, etc.

Unsecured Loan includes Credit Card Loans, Personal Loans, etc.

The ratio of Secured loan to unsecured; loan MUST be within proper limits. It is better for you if you have more secured loans!

CIBIL Score gets affected by the following activities: More loans, many credit cards, taking more loans in a short time, applying for more credit cards, and getting them rejected,

Properly utilizing the limit of loan:

For example, if your credit card limit is Rs. 50000/-, using the card for eh entire Rs. 50000/-!  Further, this will lead to the impression that you are a frequent loan taker!

NOTE THAT TO INCREASE THE CIBIL SCORE, YOU MUST NOT USE THE ENTIRE LIMIT OF THE CREDIT CARD!