Over the past few years, it has been observed that the financial literacy amongst millennials has increased significantly. Right from focusing on savings to making smart investments, millennials take every step to keep their finances secure. One important factor that can help millennials be more financially disciplined is to have a healthy CIBIL score.
Credit Information Bureau India Limited (CIBIL) maintains the records of all your credit-related activities that you carry out. Depending upon the credit amount you take, and your repayment history, CIBIL derives a score known as the CIBIL score or credit score. The CIBIL score ranges from 300 to 900. You must always try to maintain a high CIBIL score. This is because most lenders make a CIBIL score check before approving your loan application. If you have a CIBIL score of 750 or above, lenders may consider you a low-risk applicant and approve your loan application with ease. Also, a high CIBIL score can make you eligible for a higher loan amount at a reasonable interest rate. Let us have a look at all some important steps that can help you maintain a healthy CIBIL score.
Make timely repayment of your existing loans
If you have any existing loans, make sure that you repay the loan within the stipulated time. Do not delay in paying your monthly instalments, as late payment can hamper your CIBIL score. Manage your monthly budget efficiently so that you do not defer on your EMIs. Timely repayment can help you build a healthy CIBIL score gradually.
Clear all outstanding debts
It is essential that you clear all your outstanding debts to have a healthy CIBIL score. If you have several debts, you can consider consolidating them by taking a personal loan. By doing so, you can not only clear your dues quickly and conveniently but also save a substantial amount towards the overall interest outgo.
Minimize your credit utilization ratio
Your credit utilization ratio is the ratio of the credit you use to the total credit limit. You must try to keep it as low as possible. You can minimize your credit utilization ratio by using your credit card wisely and increasing your credit limit. Having a low credit utilization ratio will help you maintain a healthy credit score.
Have the right credit mix
Having the right balance of secured and unsecured loans can also help you to maintain a good credit score. However, once you avail the loan, your prime responsibility should be to make its timely repayment.
Check your CIBIL score
Make sure that you keep a check on your CIBIL score. You can check your CIBIL score by visiting the official CIBIL website. To check the CIBIL score, you will have to pull your CIBIL report. Make sure that your CIBIL report is error-free because any error in your CIBIL report can hamper your CIBIL score. According to the RBI guidelines, you can check your CIBIL score for free, once every financial year.
Now that you are well aware of various tips and tricks that can help you maintain a healthy CIBIL score, ensure that you work towards improving your CIBIL score before applying for any loan.
You can pull your free CIBIL report to check your CIBIL score easily at Finserv MARKETS. At Finserv MARKETS you get a Financial Health Check Report (FHCR) that gets your CIBIL score and displays your creditworthiness across factors such as repayment history, the length of credit history, credit utilization and the type of credit you have taken. You will also get access to personalised advice regarding improving your credit score to get better offers in the future.
The process to check your CIBIL score is mentioned below:
- Visit the official Finserv MARKETS website, click on “check CIBIL score”, and fill in the required details.
- You will receive an OTP on your registered email ID and mobile number.
- You must verify your identity by confirming the OTP.
- On verifying your identity, you will be able to view your detailed financial health report consisting of your CIBIL score.
It is to be noted that the CIBIL check conducted at Finserv MARKETS would be a soft inquiry. Therefore, it won’t reflect on your CIBIL report. This will not hamper your credit score in any way. You can also make use of the Finserv MARKETS mobile app to check your CIBIL score. The app is easy to use and can be downloaded on both Google Play and App Store. Apart from checking your CIBIL score, you can also avail various other financial services at Finserv MARKETS. Right from availing a loan, purchasing insurance to making smart investments, Finserv MARKETS can prove to be a one-stop solution for all your financial needs.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”