Credit Score After all, many times it happens that we keep on falling. While we never defaulted on the loan. We also regularly pay all the EMIs and check our credit score every month with high expectations that maybe it increases and it falls, then it is surprising that we were told to keep giving installments on time and the credit score will increase.1. The first reason many times there is a mistake in it, it is very rare, even if someone else’s loan goes in someone else’s PAN card and if they do not pay the loan, then your credit score gets reduced. So you don’t have to keep checking it regularly.Apart from this, if you have not taken any loan today but you want to take a loan later, then you will have to build credit score from today and it may take 8 months 10 months a year to take credit score from zero to a relative level. Is. So if you want to take someone in the future, then it is important that you improve your credit score from today.So basically there are two types of people who have taken loan who have not taken loan and this post is important for both of them. Let us know what are the things that increase your credit score, which things decrease and how you can easily improve it.What is credit score?First of all let us understand what is credit or CIBIL score, what is its fund. So if you have also seen CID or Crime Patrol in your childhood like me, then whenever there was any doubt in that serial, then their police track record was first seen in a computer in a digital software.
To check whether they have been involved in any crime before or not.So now think when you go to the banks to take a loan, what do they know whether you will return the loan or not or how they should decide whether you should give money or not. Income proof and other things are on their side but they also need a mechanism so that they can check your entire history and see if you have taken a loan before and taken a credit card. If you have taken any type of loan, then what has been your repayment history. Will you give the money on time and on that basis they are able to decide whether you want to give loan or not.So this credit score is like a centralized mechanism. All the financial institutions that disburse loans have customers coming to them, then they upload the data of that customer in this central database. So that the next time you go to any other financial institution, your database is already there and they can check your history.So this is a kind of centralized data base which tracks your history whether you have paid the loan before time or not. So this is the concept of credit score. So basically you can never run out of credit score. He will always keep telling about you to the bank and financial institutions that they have to believe in you that they will not be able to get away from you for the rest of their life. This is important because and sometimes because manual work is involved in it, then mistakes are made in it. He may have paid his loan but he did not enter this database and the bank made a mistake. Somebody else’s loan went in your name, some two or four paise left, not even two rupees were left, you thought the loan was completed but they are still showing pending in the central database. So in order not to make all these mistakes, it is important that you keep tracking it regularly.
Benefits of a good credit score –
You know what it means if your credit score is very good or very disciplined and you have got a good credit score. A good credit score means that more banks, more NBFCs, and more credit card companies will be ready to give you their products, and will be ready to give loans. They will have more trust in you and right now you can understand that if 10 banks are ready to give you a loan, it means that you have more options whether they are taking or not taking less processing fee which also gives less interest. I’ll take him. Know that a better credit score means that you will have more variety, which means whenever you need a loan, you will get it cheaply, so this is the advantage. A bad credit score means that if you are very poor then you will find it very difficult to get a no substation loan. How does the credit score not get worse? So let us now discuss how it does not get worse, how your credit score gets bad, and how you can improve your credit score. First of all, it would be clear from some major confusion that how your credit score does not get spoiled so that you do not have to worry about those things.
Checking Your Credit Score More Than 1 TimeThe thing that does not make it worse is if you check your credit score frequently. If you are checking your credit score regularly, then checking will not spoil your credit score. You can check that it will not have any impact on the credit score. So now you know how to track.
2. for not using credit cards regularly second note fully using and a credit card or note regular using your credit card. Even in a confusion, many times I think that if I have a limit of 50 thousand on my credit card and I have spent five thousand or have not spent any month or spent two thousand rupees, then because I am not using my credit limit, that’s why my Credit score will deteriorate. It is not at all that there is a limit, so using it will only spoil if you do not use it, it is not that at all, do not worry about it.
3. By increasing the credit card limit third, if you increase your overdraft limit or credit card limit, then increasing the limit will give you the option of taking a loan, you have not taken that loan. So even increasing the limit will not spoil the credit score or not, you can check. Checking will not spoil it, increasing the limit will not spoil it, and using less will not spoil it either. Don’t be afraid of these things at all.
Due to a bad credit score
Now we know what are the things that make it really bad and why even if we are paying the loan on time, we are giving the installment, even then it gets spoiled many times and it does not hurt us a lot, then you know how your credit score gets worse.
1. Due to non-repayment of loan or EMI on timezone thing we all know. If you have taken a loan and you are defaulting on paying the EMI, then it will be bad, we all know this, so we compensate on time. But there’s another reason.
2. Frequent checking of your credit score by financial institutions or banks second, if you have repeatedly inquired about the loan with the financial institutions so that they take out your credit history from the financial institution’s credit bureaus of the bank and understand it carefully. Every time you get your credit report from the credit bureaus from the money market, your credit score will also be bad, but if you are going to the bank for any kind of loan to the financial institution and they are extracting your credit information from the credit bureaus To decide whether you have to give a loan or not and if this is happening again and again then your credit score will be bad.
3. Using to the top of the loan limitThird, if you use the loan limit, which is your limit, use it till the very top. For example, if your credit card has a limit of one lakh monthly and you are using up to 80 thousand ninety-five 95k, you are using almost full capacity or are using more than half, then this will also impact your credit score. Because it’s a sign to the bank that you are totally drawn.
4. Using too much loanFourth Your Credit Mix. Do you have too many credit cards? On top of that, there is a home loan and an appliance loan. The number of loans that can be taken is education loans, and vehicle loans and have taken many loans, this is also a problem. If your total income is 50 thousand months and out of that you are paying 30 thousand rupees in loan, this is also a very bad sign, then how many loan products are there and how much percent of your monthly salary you are investing in paying the loan. Your Credit Score is also affected.
How to Improve Credit Score
Now some know that if your credit score has become bad, then how can you improve it, you can improve it by taking secured loan instruments. Now, what happens if you are taking a credit card which is so secure of your FD that you are getting a credit card of 80 thousand rupees in return for making an FD of one lakh, then the bank will not be afraid to give it because it has one lakh There is a security of Rs. So even if your credit score is bad, the bank will be ready to give it.