TIPS TO Improve CIBIL Score: Are you facing trouble in getting a loan due to poor CIBIL score? Know the easy way to improve your CIBIL score

CIBIL Score for Loan: When you go to take a loan or get a credit card, the bank looks at your CIBIL score. This score tells how well you borrow money and return it on time.

TIPS TO Improve CIBIL Score: If your CIBIL score is high, then you can not only get a loan easily.

Many people face difficulties while taking a loan due to a poor CIBIL score. A good CIBIL score is very important for taking a loan. It is also called a credit score. If you want to take a loan (Bank Loan) and your CIBIL score is between 300 and 900, then it is fine. But, if your CIBIL score is less than 650, then you may face difficulties in getting a loan.

So let's know what is CIBIL score and how important it is. Along with this, we will also discuss how a bad CIBIL score can be improved again.

What is CIBIL Score?

When you go to take a loan or get a credit card, the bank looks at your CIBIL score. This score tells how well you borrow money and return it on time. Actually, CIBIL score assesses your financial condition. It is calculated on the basis of different factors, such as your ability to repay the loan, habit of paying on time and the amount of the loan amount. If your CIBIL score is high, then not only can you get a loan easily, but the interest rates are also low.

Reasons for Having a Low CIBIL Score

There can be many reasons for a poor CIBIL score. If we talk about the main reasons, then these include not paying the loan on time, loan amount, excessive use of credit card, lack of credit history etc. Let's know one by one...

Why does CIBIL score deteriorate?

• Not paying the money on time: Suppose you have borrowed money from the bank or have a credit card bill, if you do not pay the money on time, then your CIBIL score gets spoiled.
• Taking too much loan: If you take too many loans, the bank feels that you may not be able to repay all the money. This also lowers the CIBIL score.
• Excessive use of credit card: If you spend too much on credit card and do not pay the full bill every month, then also your CIBIL score can get affected.
• No credit history: If you have never taken a loan or used a credit card, you will have no credit history. This means that banks do not know much about you and may hesitate to give you a loan.

What happens if your CIBIL score is bad?

• If your CIBIL score is bad, it will be very difficult for you to get a loan.
• Even if you get a loan, you will have to pay more interest.
• It will also be difficult for you to get a good credit card.

How to improve CIBIL score?

To improve a bad CIBIL score, try to repay the outstanding debt as soon as possible. This will improve your credit status. Apart from this, limit the use of your credit card and pay the bill on time. While taking a loan, keep in mind that the interest rate should be low and you have the capacity to repay that loan. Here we are telling you some easy ways to improve your CIBIL score or credit score...

• Pay on time: First of all, you have to pay all your loans on time.
• Reduce debt: If you are sitting on a lot of debt, try to repay some of it.
• Use credit cards less: Use credit cards less and pay the full bill every month.
• Do not take a new credit card: Do not take a new credit card until your CIBIL score becomes good.

If the matter is not resolved even after doing all this then you can also take advice from a credit help agency. 

How to check CIBIL score online for free?

Mobile wallet app Paytm has launched the facility to check CIBIL score for free. Now users can see their credit report in detail. Through this, you will also be able to see the credit report of active credit card and loan account.