- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Credit score is an important factor that helps in making decisions for the banks that provide us credit facility. CIBIL is one of the leading credit score providers in India that helps in understanding the factors affecting CIBIL score.
Your CIBIL credit score is helpful in evaluating your creditworthiness. If you haven’t paid the bills on time, it affects your credit score. Here are some surprising things that could alter your credit report.
There are few things that are known to hurt your credit score. Here are some of them that you need to focus on.
1. Cut down on the number of your credit cards:
Applying for a credit card is what cuts down your score. It is also noted that if you apply for a card, it is known as a hard enquiry. So cutting down on your cards will affect your credit score. The more number of cards you have inquired for, the more number of inquiries are added to your name or account. Therefore, you need to keep a check on the number of new credit cards you have taken so that your credit score does not come down.
2. Do Not Increase Your Credit Limit:
If you increase your credit limit, it results in increasing your hard enquiries; this will again lead to a decrease in your credit limit. Unless it is very much needed, do not request for an increase in your credit limit as it will have an adverse impact on your CIBIL Score. It is better to have a proper credit limit that will help you in maintaining a positive credit score.
3. Be Extra Cautious While Using Credit Cards:
If you have taken precautions while using your credit cards, you can prevent the negative effect on your CIBIL Score. Using your credit cards in a proper way will help you in maintaining a positive credit score.
Maintaining caution while using credit cards will help in improving your credit score. A borrower who has behaved in a cautious way while making use of their credit cards will always have a good credit score.
4. Tenure of the Loan:
This is another factor that affects the CIBIL Score. If you have been repaying all your loans on time, you will see a positive impact on your credit score. If you have made a prepayment of the loan or you have closed your loan completely, you will see that there is an impact on your credit score. The tenure of the loan you have taken also matters when it comes to the credit score.
5. Check Your Credit Report:
It is advisable to keep a check on the on your credit report on a frequent basis. Having checked it regularly will help you in avoiding mistakes on your credit report. Checking your credit report will help you in making note of the points that are causing a negative impact on your credit score. It will not only help you in maintaining a good credit score, but also keep on improving it for a better financial future
6. No Loans:
If have no loans history, you will have an effect on your CIBIL Score. Having no loans history will have an impact on the credit. If you have not taken any loans previously, you will not have any loan history. This will be reflected on your credit report as well as your credit score.
7. Minimize Your Search Enquiries:
The more enquiries you make regarding loans, the more it affects your credit score. Number of Credit enquiries is directly related to CIBIL Score. If you have made many enquiries within a short span of time, you will surely see its affect on your CIBIL Score.
8. Loan proportion and Type:
The proportion of loan you have chosen also matters. If you a proper mix of your loan and their different types, the effect of it on your CIBIL Score is in your favor. The proper combination of the types of loans you have taken will decide on the credit score that will be allotted to you. Your credit score will get impacted adversely if you have not been able to maintain the proper proportions of the loan you have applied for.
9. Default on Payments:
If you have defaulted on your bill payments your CIBIL Score will get affected negatively. So it is advisable to never default on your payments. If you are forgetful person, you can set a reminder for making your bill payments on time.
10. Paying Your Credit Card Bills on Time:
Doing this will certainly help you in ascertaining the factors that will cause a negative impact on your credit score. If you paid your credit card bills on time, you will have a good credit score and if you are late in making the bill payment, you will come under the category of those who have a bad credit score.
11. Repayment History:
If you have been maintaining a proper repayment record, you will be the one among those who have a good credit score. If you have not made your repayments on time, you will be the one who will have a bad credit score and it will be difficult for you to take new loan in future.
12. Credit Hungry Behaviour:
Behaving in a credit hungry manner will also have an impact on your credit score. So it is advisable not to behave in a credit hungry manner if you are willing to maintain a good credit score.
As you are now aware of the points that are considered while calculating your credit score, it is advisable that you keep monitoring these factors and maintain a good credit score. This you can do by analyzing the complexities and importance of each of these factors and implementing the right strategies. This way you will able to comprehend what is right and what is wrong with respect to your credit report as well as credit score. With Creditseva, you will be able to make hassle free loan payments and improve your credit score in an easy and appropriate manner.
- TransUnion CIBIL
- CIBIL Credit Score
- CIBIL Credit Report
- Free CIBIL Score & Report
- How to Check CIBIL Score
- How to Improve CIBIL Score
- How to Pay Off Credit Card Debt
- Bad CIBIL Credit Score
- CIBIL Score Calculation
- Can I Get a Loan with a Credit Score of 550
- CIBIL Score Myths
- CIBIL Grievance Redressal Process
- CIBIL Report Error
- CIBIL Score for Car Loan
- CIBIL Score for Credit Card
- CIBIL Score for Home Loan
- CIBIL Score for Personal Loan
- How to Get Personal Loan with Low CIBIL Score
- CIBIL Score for Business Loan
- Can I Get Car Loan with Low CIBIL Score?
- CIBIL Credit Monitoring Services
- Link between MCLR and CIBIL Score
- Credit Score Important at Retirement?
- Does Personal Loan & Credit Card help Improve Credit score?
- Factors That Deciding Your Credit Score
- Factors Affecting CIBIL Score
- Top 12 Interesting Facts about CIBIL Score
- CIBIL FAQs
- Good Habits That Help You Maintain Good CIBIL Score
- Minimum Payments Affect Your Credit Score?
- How to Read Your Credit Report
- Impact of Late Payment on CIBIL Score
- Tips to Increase CIBIL Score
- Loan Settlement Affects CIBIL Score
- Low Credit Limit despite a High Income
- Loan Approval Process On CIBIL Score
- Importance of CIBIL Score for Financial Objectives
- Importance of CIBIL Report
- Missing One Payment Affect CIBIL Score
- Small Mistakes That Can Hurt CIBIL Score
- Personal Loan for CIBIL Defaulters
- Reason for Loan Rejection Other than CIBIL Credit Score
- How to Resolve CIBIL Report Errors
- Skipping Bill Payments can Affect Your CIBIL Score
- Solutions for Your CIBIL Credit Report Problems
- Test Your Financial Fitness
- Things That Don’t Show up on Your Credit Report
- CIBIL Consultant
- CIBIL vs Experian vs Equifax vs CRIF High Mark
- Different Types of Credit Can Boost Your CIBIL score
- Having a High CIBIL Score can get you a low rate of interest
- How a Good CIBIL Score Can Improve Your Job Prospects
- How Credit Information is Important for a New Borrower
- How Long It Takes To Improve CIBIL Score
- Tips to Improve CIBIL Score
- Important Factors for CIBIL Score improvement
- Co-Signing a Home Loan? Proceed with Caution
- What is DPD in CIBIL Report?
- How to Remove Name from CIBIL after Settlement?
- Ways to Remove Name from CIBIL Defaulter List
- CIBIL Dispute
- How to Improve CIBIL Score after Personal Loan Settlement?
- How to Improve CIBIL Score after Home Loan Settlement?
- How to Improve CIBIL Score after Education Loan Settlement?
- How to Improve CIBIL Score after Car Loan Settlement?
- How to check your CIBIL Score with your PAN Card?
- How to Improve CIBIL Score after Settlement?
- How to Improve CIBIL Score Immediately?
- Car Loan for CIBIL Defaulters
- CIBIL Score for SBI Bank Credit Card
- Credit Card for CIBIL Defaulters
- Home Loan for CIBIL Defaulters
- Loan without CIBIL Verification