IMPORTANCE OF CIBIL SCORE

IMPORTANCE OF CIBIL SCORE

 

A bad credit score can cost you in Lakhs🔻

 

With a credit score of 750+, Home Loan will cost you 9%📈

 

If your score is <650, you pay 10.5%, or even more📉

 

This makes you pay ~₹24 Lakhs on a 20yr loan of ₹1 Cr

 

Top 5 things to boost your Credit / CIBIL score.

 

[1] Repayment History

 

Missed paying:

🔶 An EMI?

🔶 Credit card bills on due date?

 

Or just paid the minimum balance?

 

The banks know it all!

 

Missing these payments can adversely impact your credit score

 

Your history gets highest 30% weightage in CIBIL score calculation

 

[2] Credit Utilization

 

🔶 Your EMI eligibility is 70% of your income and you're already at that limit

 

🔶 If your credit card limit is ₹1L and your avg o/s bal is ₹98,500

 

Then banks know that a bad event can make your default

 

Ideally keep credit utilization ratio below 30%

 

[3] Multiple enquires

 

Negotiating for best interest rate & shared your:

🔶 PAN

🔶 Aadhar

🔶 ITRs

 

with a lot of banks at the same time. You are said to be punching a hard enquiry

 

You're looked at as 'Credit Hungry' who's unable to source a loan

 

Limit your search to 2-3 banks

 

[4] Loans applied and availed

 

The credit bureau will keep a track of loans you've applied for in the past and how many of them got approved

 

If there are many rejections, your credit score gets adversely affected

 

[5] Credit Mix

 

Having too many unsecured loan EMIs as %age of your income might adversely impact your credit score

 

Having a mix of secured and unsecured loans should ideally be considered