Cibil score news: Most people think that improving the CIBIL score is a difficult task, but let us tell you that it is not so at all. To improve the CIBIL score (Cibil score importance), you have to follow some special methods, after which you will easily get a loan at low interest rates without any hassle in one go. Most people do not know about these methods and how to use them, because once their CIBIL score is bad, then they are unable to improve it.

Effect of rent payment on CIBIL score -

To find out the financial status of the bank customer, there are some major agencies named Credit Information Bureau India Limited, Experian, Equifax, and Creditus, which collect information about your transactions and borrowings. These are the major agencies, which track your spending habits and borrowing records. Usually, house rent or other small expenses were not included in these reports, as it was not directly related to the bank or other financial institutions. However, over time, new methods have been adopted in many countries, especially in India, through which rent payments are also being added to your credit report.

This is how rent payment is linked to credit history -

Now many digital financial platforms and credit monitoring institutions have started accepting rent payment information. If you pay your residential payment i.e. living rent on time and it is recorded digitally, it shows your financial discipline. It is linked to your credit history and by keeping such records in mind, your credit history can improve, which strengthens your financial position and you can avail yourself of better lending terms in the future.

Standard of CIBIL score-

An important indicator of your financial condition is your CIBIL score, which is based on your past transactions and payment habits. It ranges from 300 to 900, which indicates how reliable you are when it comes to money transactions. When it is above 750, the score is high, which can help you get better terms for loans and other financial services. To increase this score, one should adopt the habit of paying bills and loans on time.

Payments reveal financial behavior -

An important part of about 35 percent of your financial record is related to your payment habits. Paying money regularly shows that you are aware of financial responsibility. If you pay rent on time and report it, it indicates your good management. Banks and NBFCs keep an eye on this and your financial behavior is revealed.

Ways to improve CIBIL score -

Often people think that your CIBIL score improves only by paying loan EMI and credit card bills on time, but also know that paying house rent on time also has a positive impact on your CIBIL score and this helps in your financial balance as well as can improve your score (How to improve credit score). On the contrary, not paying on time hurts your financial record. Payment on time keeps your score safe and reduces potential risk.

1. Choose the right platform to pay rent -

Some apps provide you with the facility to pay rent. These apps track your payment and include it in your credit report. It considers rent payment as a responsibility, like credit card EMI or loan repayment. In this way, rent payments made through these apps can help improve your financial records.

2. Maintain a record of rent payment -

If you pay rent digitally, make sure to get a receipt. This creates a correct record of payment, which can be reported in the future. Also, get permission from the landlord to record the rent payment in the credit bureau. This will have a positive impact on your financial history (rent bill effect on cibil score) and you can get better financial opportunities.

3. Advantage of paying rent digitally -

If you pay digitally, it is important to get a receipt. This is the correct proof of payment, which can be reported in the future. Also, ask the landlord if he can include this payment in the credit report. This will have a positive impact on your financial records (improve cibil score by rent bill), and if needed, this information can be included in your credit report.

4. Pay rent with credit card -

Nowadays there are many ways through which you can pay rent with a credit card. UPI and banking apps are also one of them, through this you get cashback or reward points which help improve your credit score. Never keep the credit card bill pending, pay it on time, otherwise, it can also have a bad effect on the CIBIL score (bad cibil score).
Keep these things in mind -

1. Whenever you pay rent, keep regularity in mind. Do not delay it, delaying paying rent even once will not be of any use to you. It will be right for you to pay on time every month.

2. If you have any rent receipt, always keep it safe, apart from this, if you have made any payment in digital form, then keep a record of it as well, it will serve as proof in the future.

3. Keep checking the credit report from time to time. This will let you know whether the rent is being paid correctly or not.

Benefits of good CIBIL score -

1. Having a good CIBIL score helps you in getting a loan at low interest rates easily.

2. If you have a good credit score, you can also be offered by the bank. 3. Paying rent on time and regularly helps in increasing the credit card limit and also improves the CIBIL score.

4. Paying rent on time shows a good financial position. It strengthens your position in the banking system and records.

5. A good CIBIL score is also helpful for getting a quick loan in case of a sudden need for money.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.