CIBIL score has become a part of everyday life. CIBIL score is becoming a part of life. In today's time, loans have made many people reach more things. Loans have made it easier to buy the thing that someone wants to buy in the future by saving money.

It is important for us to get loans from time to time so that our CIBIL score is also good. Will the CIBIL score fall if you repay the loan before time? Will the CIBIL score fall due to installment bounce? Let's know all the things in this article.

What is the use of the CIBIL Score?

In today's time, the number of loan takers is increasing continuously. Whenever you go to take a loan, be it from a bank or a non-banking financial company (NBFC), first of all, check the credit history, i.e. CIBIL score. CIBIL score gives information about the consumer's previous banking transactions. If the CIBIL score (CIBIL Score status check) is good then you will get the loan easily. If it is bad then forget about the loan. So the question arises of how to maintain the CIBIL score (Good CIBIL Score). Any bank can easily check the CIBIL score. Let us know point-wise the reasons for the low CIBIL score.

Do not check the loan repeatedly.

If you want to take a loan then only you should inquire about your loan. Do not check about the loan repeatedly without need. Checking and applying for loans repeatedly hurts the CIBIL score. So if you want to maintain the CIBIL score then only inquire about the loan when it is very necessary.

The amount of the loan also has an effect.

If you take a small loan from the bank then there is not much risk in it. The bank gives it easily, but for a big loan, the bank has to look at the risk. If you take a big loan then it will take more time. If you are taking a loan for a long time, then your CIBIL score can be affected. It does not have much effect, but only a little.

Many loans also affect the CIBIL score

If many loans are running in your name, then it hurts the CIBIL score. In such a situation, try to take the loan amount only according to your needs. Even if you are repaying the loan on time, taking too many loans at once can reduce your CIBIL score (Low CIBIL Score reasons).

Taking a loan from an unregistered authority

If banks and non-banking financial institutions under the Reserve Bank of India give loans, then take loans from them only. Many institutions do not have RBI licenses, so do not take loans from them. At the same time, small companies can also spoil your CIBIL score. As soon as your installment is late by a day or two, some companies send your credit history, which spoils your CIBIL score.

What will happen if you repay the loan before the time
When we take any loan, its repayment time is already fixed. It depends on us for how many months' installments we make. Then if we repay the loan on time, it will improve our CIBIL score. Not only this, you can also avoid paying more interest.

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