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Cibil Overview

Author: Asha Bansal
by Asha Bansal
Posted: Aug 16, 2017

Cibil Scores are basically a rating provided by the credit bureau "CIBIL". This score indicates the responsiveness of the borrower in paying off his/her debts timely. It is necessary for a borrower to have a cibil score at the time of taking a loan because this score becomes a basis to judge the creditworthiness of the borrower by the lending institutions. To maintain a high cibil score, it is important that the borrower practices the following activities-

Pay his/her debts timely

Not to apply for multiple credit cards as paying them would become overwhelming

Opt for secured loans

Avoid payment from credit cards as much as possible, especially at the time of payment of loan.

Planned application: Applying for a credit card should be planned. Doing your research of offers and your possibility to avail the same, can improve your cibil score range by proving responsible application from your end. Applying to several banks at the same time can go cibil scoreagainst you and affect your score.

Avoid extending any payment: Extending your due payments can have adverse effect on your cibil score range. Making a timely payment of the loan is a reflection of your behavior and ethics; hence, refrain from extending any outstanding payment.

Borrow less: Raising questions about a new player is never a possibility. Thus, try and borrow less from the bank and return the same in time without any delay. Credit score cibil range takes into consideration all aspects of your loan. Hence, borrow less and increase your credit line for future.

Minimize on unsecured loan: Unsecured loans show the lack of resources at your end, and act negative by lowering your scores. Hence, always credit score rangeopt for a secured loan whenever required.

Don’t splurge: Spending money recklessly is a sign of your irresponsible behavior to the bank. Thus, spend the money wisely without letting it affect your cibil score range. Paying back the money in time is also an effective way to increase your score and worthiness.

Improving your score with these simple methods is an excellent way to increase your chances to get a credit. It is constant performance that gives great results and the same is true for cibil score range. Being responsible and disciplined about your expenditure are the major takeaways for maintaining a high score.

These above points needs to be strictly followed by the borrower as it is very difficult to increase a bad cibil score once it appears.

There is a great article that imparted me the knowledge of cibil score. You can read this and many more articles at http://www.loankuber.com/content/cibil-score/

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Author: Asha Bansal

Asha Bansal

Member since: Aug 14, 2017
Published articles: 1

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