Are you looking to take loans from banks and financial institutions? Generally Banks prefer to issue loans for those who have good credit score. This score is important to grant loans and to have confidence on you that you will repay the due amount on-time.
So getting a loan is not only important, always maintaining a good CIBIL Score is also important. That means you have to pay your loan dues before the stipulated time period to be granted any loans in the future.
If you missed to pay the loan amount before the due date, Your CIBIL Score may be impacted, which makes it difficult to get loans further. So it is in your hands to maintain good credit score. If you don’t have good CIBIL Score, follow this tips which would improve your credit history-
- Don’t use your credit card of more than 30% of your credit limit. Swiping credit card always makes your credit score low.
- Repay the credit card bill before the due date. Check the credit card bill statement regularly. Focus on highly paid expenses as you don’t have an idea on the usage until the bill is generated.
- Don’t think that payment of credit card bills on-time acts as a tool to get loans instantly! Having too many credit cards is also a barrier to get loan approval.
- Don’t make partial bill payments, as the interest would be compounded(Generally 24-36%) on the balance amount
- Maintain your old loan payment records in handy, if the institutions asks for
- Don’t be a “Guarantor” to anyone even though the loan taker is your friend/relative. If the loan taker fails to repay, it will impact your credit score as you acts as guarantor to the loan
- Don’t apply for too many loans thinking that any one of the bank issues a loan. Applying for too many loans also impact your credit score
- Don’t overestimate that your credit score will improve overnight, if you pay the loans on-time.It will take some time to reflect in your CIBIL Score
- Maintaining good CIBIL Score is essential during your loan tenure. Making timely payments ensure good credit history. It will help you in your future loan approvals. So it is better to check your CIBIL Score frequently
By following the above tips, you can end as a good loan-payer which enables easy processing of loans in the near future!