CIBIL score and its quirky secrets.

I was having CIBIL score of 740 and odd for a for very long time ,and for some strange reason it never crossed beyond 750 the reason because I did not  have any loans or any credit card and I had only a secured credit card with ICICI with decent purchases in spite of that my credit score was stuck with 740. And then within a short span of time I had to apply for an cash credit loan and term loan and agri Jewel loan.  So now my CIBIL dropped to 720 and then this happened I had to put a guarantee signature to my cousin who had very bad loan repayment history and settlement and stuffs. So all  of a sudden my CIBIL dropped to 580. I was literally shocked seeing this because I never had missed any payments
So I started doing my research on how to improve cibil score and learned a quite a few things and with that I was able raise my score from 580 to 744 in 6 months.
The secrets:
  1. Proper payment and proper payment.  Always pay your dues on time . This is the foremost thing if you want to improve your score. Your cibil score literally takes a beating if you miss even a single payment.
  2. Proper credit utilisation. I made this blunder I shopped everything on my credit card and would pay on time hoping that my cibil will increase on the myth that am making on time payments . While a part of this is correct you should also understand that higher utilisation of credit card means that you are credit hungry and your cibil gets impacted. So always remember to use a portion of the credit you have been offered.
  3. Line of enquiries: I also made the blunder of applying for too many credit cards within a small amount of time . I had like 24 enquires in last year. Thats a huge mistake because the more the number of enquires the more you are credit hungry . So keep it in a check.
  4. History of credit: If you are someone who is getting into job get a credit card or avail some form of loan because the more the number of years cibil has your credit history the more the score gets increased . So the first thing once you start filing IT is to have a loan or CC . Do it.
  5. Pre-closure of loans : Don’t pre-close a loan or cancel a credit card because when a a loan is being offered the bank does many paper works and stuffs and plenty of their time and manpower is involved and it always evaluates that it can earn this from a particular loan which is being offered. So if you pre-close a loan it means that the profitability of the bank gets impacted . So the cibil gets automatically impacted .
  6. Settlements : Never ever settle a loan . If you cannot pay emi properly don’t take the loan . Because if you cannot pay the emi properly and opt for a settlement its like a crater falling on your cibil and you will never be able to come up from the impact .


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So the bottom line is if you follow all the above stuffs you can easily raise your cibil score in no time . I was able to do it means even you can do it.Thanks for reading.

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