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Many of us think that financial concern is the greatest stress point. A poor Cibil credit score can just increase the financial problems. Your Cibil credit score can be rebuilt and it is connected to improving overall finance management.

Credit score for any person can lie anywhere between 300-900. A score of more than 700 is usually considered good while no matter which below that is not preferred by banks. Data indicates that loan applications are usually green for customers with a score of 750 and above.

Factors that negatively affect your credit score

There are many factors that create or break your credit score. Some of them have been highlighted below.
Payment history and the number and occurrence of payment defaults or delays
Total amount of debt detained by you at any point of time
Types of credit that you have availed e.g., personal loans, car loans, credit cards etc.
Number of new credit requests made to different lending entity
Utilization of your credit limit, i.e. the amount of available credit that you have used

How to keep the CIBIL score good

If someone meets all the criteria of age, monthly income for a loan or credit card applications, it could be still rejected if the CIBIL Score is not good. The best way to avoid the situation is to instill certain habits that will help ensure that CIBIL Scores will never suffer.

Pay on time

There is no doubt that on-time payments are the most preferred payments. If the payments are made on time it can indicate an accountable behavior towards credit, which in turn means that the credit score is not exaggerated negative. If a credit card or loan payments are not made on time then it indicates lack of proper financial planning can bring down the credit scores.

Full payments for credit cards

There are two options every credit card holder has when the bill come. The first option is to make the whole payment in one go and the additional is making the smallest amount payment indicate by the bank. While going for the second option may get the banks off your back about the amount due, for CIBIL the amount not paid back is measured as an late amount which means that the customer’s financial management is not good. To shun this, for all time make sure you go in for option 1; pay all credit card bills in full.

Earn more, spend less

Earn more and spend less does not denote that salaries have, no matter which to do with CIBIL scores. It just means that don’t use more than you earn. When the expenses exceed the earnings the need for credit arise, which in turn may lead to more spending and collection of debt. Creating an emergency fund is a good way to keep away from credit for small things.

Never default

If you have taken a loan or own credit cards, make convinced you make all the payments. If you miss a compensation or default, it gets famous in the credit history and brings the score down or creates problems when the time comes to take a loan in the future.

Don’t be credited hungry

Credit hungry behavior could be continuously applying for loans. Every time a loan is applied for, the bank checks the credit report, for every check the CIBIL score come down a small piece. This will guide to a lowering of the in general score. The best thing to do is to not apply for a loan till you absolutely need one. Another thing to do is to check CIBIL scores yourself as that will not have a negative crash on the score.

Keep the borrowing balanced

Keeping a balance in the borrowing means that a fit combines in loans. In its place of just taking one type of loan all the time, obtain a home loan, then a personal loan and then maybe a car loan, etc. If there is a too much unsecured credit, personal loans or credit card debt, it makes prospect lenders careful about yielding loans.

Don’t close credit cards

It may seem counterintuitive to not close avenues that could get you into trouble with credit histories, but the easy fact is that if you close all your credit cards, then you won’t have a basis to actually construct a history when you need to get a loan. The perfect thing to do would be to take the card and use it very wisely.