CIBIL Score: CIBIL score gives information about your financial condition. If it is called in simple words the grade system of your debit, credit and liability, then it would not be wrong. Whenever you go to take a loan from any bank or government institution, first of all your CIBIL score is obtained.
If your CIBIL score is negative then no bank approves your loan application. In such a situation, you have to take a loan from outside at a steep rate of interest, due to which your financial condition becomes worse. In such a situation, we are telling here the information about the things that affect the Cibil Score, which you should read.
If you buy something on EMI with the help of credit card from an e-commerce site or anywhere else and you miss any EMI, then your loan repayment history gets negative mark. Which affects your CIBIL score. At the same time, sometimes prepayment of loan has a negative impact on the repayment history.
In today's time everyone has a credit card. In such a situation, while checking CIBIL score, your credit card ratio is also checked. Understand credit card ratio with example. Suppose your credit card limit is Rs 1 lakh and you make a purchase of more than Rs 30 thousand, then your credit ratio will be considered bad. According to experts, only a maximum of 30 percent of the credit card limit should be spent.
“Credit Miss Report” is a document which states that you have not paid the loan on time. This report may be prepared by credit bureaus (e.g., CIBIL, Experian, or TransUnion) and is used by banks before granting loans. If your credit miss report is bad then you should immediately repay the outstanding loan on time.
