A credit score is a three-digit number that explains how much creditworthy an individual is. It usually ranges from 300-900. In this range of credit score, 300 is the least credit score of an individual and 900 is the highest credit score of an individual. The higher the score, the higher is the creditworthiness of an individual. In simple words, credit score is a quantitative representation of the credit history that is mentioned in the credit report.
Having a Good CIBIL score and a good credit history is always beneficial for an individual. A good CIBIL Score helps an individual in getting easy access to loans. This is so because the very first thing that is considered while granting a loan to an individual is their credit score and credit history. A good CIBIL Score is the first and foremost thing that is checked by the lenders to check the creditworthiness of the borrower.
Tips to Maintain a Good CIBIL Score: Following these tips will be of great use to those individuals who are always seeking ways to maintain a good CIBIL Score. These tips are easy and simple to follow
1. Paying Dues on Time: If you are individual who is keen to maintain a good CIBIL Score, and then one thing you should remember is to always pay all your EMIs on time. This is applicable in case of loans taken by individuals and if an individual has taken a credit card, it is crucial to make the payments for all the dues on proper time without any delay.
2. Ways of Debt Settlement: The way in which individuals have settled their loans or dues is also a factor that contributes to a good CIBIL Score. The credit history of an individual has all the details regarding the loan settlement methods chosen by the individuals. For a Good CIBIL Score, it is mandatory to close a loan rather than settling it. If an individual has opted for One Time Settlement, then it will also be reflected in the credit report of that individual. A One Time Settlement creates caution in the minds of other lenders who might be approached by the individuals in future.
3. Maintain Financial Discipline: The best way to stay away from getting in the bad books of the borrowers is to make all your payments on time so that the payment history of the EMIs paid by you is crystal clear, without any default payments record in it.
4. Getting Errors Corrected: If you have found any errors in your credit report, then you should make sure that you get the errors corrected by approaching CIBIL. This will help you in maintaining a good CIBIL Score, which is actually a gateway to get loans.
There are many things that are actually considered by the banks or lenders while providing loans to individuals. But the most important of all the other things is a good CIBIL Score and this is most crucial deciding factor for the lenders to give loans to the borrowers. Therefore the most critical factor that would make it easy for the individuals to get loans is a Good CIBIL Score.