Now that you are going to avail a loan or credit card, it is important that you should know about the three- digit numeric summary. Well, we are talking about none other than free cibil score. Now you must be wondering why this numeric summary plays a pivotal role here? How is it important? In order to know the answer of the same, let’s go through the article below.
Talking about a credit score, it is nothing but a three-digit numeric summary that basically reflects the credit history and repayment record of an individual. These numbers show the creditworthiness of an applicant that allows lenders to decide whether that individual is worthy enough for the same or not. Usually, this score ranges between 300 to 900 and most of the lenders consider a score of 700 or above good enough in grabbing the best deal.
However, one thing that needs to be mentioned here is the fact that it is important for an applicant to maintain a good score as then only, he would be able to grab the best deal. Most of the lenders before offering any sort of credit facility to the applicants do check the same so as to have a quick access to an applicant’s profile. Thus, it is important that an applicant should keep his score at a good position. And, in case, you don’t know how to improve cibil score, just go through the article below.
Tips to Improve your Cibil Score
Make Timely Payments: If you have any loan or credit card debt running on you, make sure to do the timely payment of the same as doing so will boost your score. If you miss or skip any payment, it will further harm your profile. So, try to work on the same. However, if you find difficult to make payment on time, you can set a reminder for the same so that you cannot skip a payment.
Avoid Sending Multiple Applications: No matter what sort of loan/credit card you are looking to avail. It is important that you avoid sending multiple applications to the different lenders. Yes, sending the same will affect your numeric summary as there might be the chances of rejection also, which can harm your score.
Avoid Unnecessary Expenditure: If you are someone who is using a credit card, it is important for you to set a budget for the same. Yes, until and unless, you won’t do the same, you might be stuck in the debt trap. While using a card, people usually got stuck in a debt trap as they didn’t realize the same at the time of using it. Hence, it is important that one should be careful while using a card so that the unnecessary expenditures can be avoided.
Apply for a Loan or Credit Card: If you are someone whose cibil score is zero, it would be advisable for you to start applying either for a loan or credit card as per your need. With the help of doing the same, your financial journey can be started and you can build a score.