Cibil Score Tips: Even after paying EMI on time, Cibil's score decreased, this is the reason..

A credit score helps you a lot in getting a new loan. With a good credit score, you can get a loan quickly and at a lower interest rate. However, maintaining a credit score is a big challenge. Even a slight mistake can bring down the credit score by 100 points. The most important reason for a drop in the credit score is not paying EMI on time.

But what could be the reason if the credit score decreases despite paying EMI on time? Moneycontrol has tried to know how this can happen by reviewing such situations.

Why did the credit score fall?
Despite making timely payments, a person's credit score fell by 50 points. Whereas his expenses were less than 30 percent of his credit limit. Looking at his credit statement, it was understood that the person had paid only the minimum due every month. Because of this, his due became more than 60 percent of his credit limit, which is quite high. This was causing a drop in his credit score. After making the full payment, the person's credit score improved within 3 months.

A new loan is also a reason.
In another case, a woman's credit score fell from 848 to 40 points. Her payment was being made on time. She had taken another home loan after the first loan. As soon as her second loan started, her credit score went down. This problem can also be overcome by one-time payment. As the loan is repaid, the credit score will keep improving.

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