CIBIL Score latest update: The most important thing for a loan is the CIBIL score (CIBIL Score tips). With the help of the CIBIL score, the bank provides you loans very easily. Before taking a loan (loan tips), you should pay attention to some things so that your CIBIL score does not deteriorate. There are mainly 10 reasons for a poor CIBIL score. Due to these reasons, your CIBIL score deteriorates. Know the complete details about this in the news.

CIBIL score has this effect-

1. Payment history-

For information, let us tell you that credit history has the biggest impact on your CIBIL score (CIBIL Score kya h). It contains a summary of all your loan and repayment transactions. With the help of credit history (credit history role in CIBIL Score), you can find out whether you are paying your dues on time or not. In such a situation, if you have missed making a payment, it hurts your credit score (CIBIL Score kab kharab hota h). On the other hand, if you are thinking about making the payment on time, then you should set a reminder.

2. Credit Utilization Ratio-

Many times the credit utilization ratio (what is the credit utilization ratio) is also seen by the bank about the credit limit. With the help of the credit utilization ratio, you can see your credit amount. Due to the low credit utilization ratio, only a small part of your total available credit should be used. In such a situation, many times banks feel that you are managing your credit well. However, a high credit utilization ratio (credit utilization ratio for loans) indicates more dependence on credit. CIBIL score is calculated according to this.

3. Pay the outstanding amount-

If you pay all your payments on time, then with the help of this you should ensure that failing to do so will hurt your credit report, due to which your CIBIL score will also decrease.

4. Minimum amount due-

The minimum amount due is a part of the outstanding amount, which you can pay every month on your credit card bill to avoid a late payment fee. If you pay only this amount, then you have to pay interest on the outstanding amount. Through costs, your loan can increase substantially with the loan duration. In such a situation, it is necessary to pay your credit card bills in full to avoid additional costs.

5. Keep these things in mind before applying for a credit card-

Usually, when you apply for a credit card, the bank makes a hard inquiry to determine whether you are eligible to get the card or not. The inquiry temporarily reduces your CIBIL (Credit Information Bureau (India) Limited) score. In such a situation, if you apply for many credit cards, then the bank will make many hard inquiries, which can significantly reduce your CIBIL score.

6. CIBIL report-

The CIBIL report shows the details of your previous and current credit accounts. Any mistake in this report can spoil your CIBIL score. Review your CIBIL report regularly, and if there are any mistakes in your CIBIL report, then you should check those mistakes and report them to the banks to correct those mistakes.

7. Length of credit history-

For information, let us tell you that the record of transactions in credit history is recorded. If your credit history is long, then it helps banks to properly check your repayment activities.

8. Choose the option of credit mix-

If you have many credit options and you feel that you can pay them properly by merging these options, then you should merge all these credit options. Because you may have trouble handling different types of credit reports.

9. Do not close old credit card accounts-

If you have any old credit card accounts, then you should not close these accounts. In these accounts, a long credit history related to the card gets erased. If you have a credit card for a long time, then you should not think about closing these accounts at all. However, you may be forced to close the account for a new credit card (credit card rules) because the credit history is relatively short.

10. Debt to Income Ratio-

The debt-to-income ratio shows the portion of your income that goes towards loan payments. A high debt ratio indicates a greater dependence on borrowed funds.

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