CIBIL Score: Once spoiled, CIBIL score does not remain correct for many years, know the way to improve it...   


If the loan defaults, i.e. if you do not repay it on time, your CIBIL score gets spoiled. Like a child appears in an examination and does not get good marks if he does not give the paper properly. Later, due to the same low marks, the child does not get admission to a good college. The same situation happens when a loan is taken and there is a default. If you do not repay the loan, you get the notoriety of default which spoils your CIBIL score. Next time you go to any bank to take a loan, you will not get the loan and even if you get it, it will be at a high rate of interest.


Now the question is whether the CIBIL score gets spoiled from birth to birth. Is there no scope for any patching or improvement in it? If this were the case then people would probably never have defaulted on loans. There must be some scope available so that the way forward can be opened and some loans can be provided.

Understand with this example

Let us understand the basics of CIBIL score with a simple example. Suppose you took a loan from a bank to build a house. Initially, you kept paying the loan installments but suddenly the lockdown was imposed and your business got ruined. In this situation, you have no option but to stop the installment. As soon as the installment stops, the bank puts you in the default category.

Later the financial situation improved and you paid the remaining installment amount and the interest accrued on it to the bank. This would make you think that the loss in CIBIL score will be compensated. You kept your hopes right, but experts told you that despite doing everything, the CIBIL score remains bad for at least two years. Pay the pending installment or even pay its interest, CIBIL's score has not improved for two years and its loss is seen in many financial needs.

CIBIL score error cannot be hidden

The air of the CIBIL score is such that its waves reach every corner. That is, the negative ranking of your CIBIL score reaches every bank and finance agency. Next time you go to any bank or finance company for a car loan, they will immediately know your negative score. In such a situation you will not get the loan. Even if a loan is available in Chirauri and Muravvat, its interest rate will be charged at higher rates. Then you come to know very well about the importance of CIBIL score.


How does the CIBIL score improve?

There is positivity in the CIBIL score by looking at your transactions and payments of credit cards or small and big bills. Do not delay payment of bills, pay bills on time, and pay in full. Like, pay the entire credit card bill, not the minimum due amount. This improves the CIBIL score. Many times people do not take NOC from the bank after taking the loan and repaying it on time, due to which the CIBIL score goes negative. NOC should be taken immediately from the bank, only after which your data on CIBIL is updated. The same thing is with credit cards also. If you close a credit card, complete all the paperwork with the bank. Take the certificate of closure of the card from the bank. All these things improve the CIBIL score.

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