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Improving Declining Cibil Score

By Finserv MARKETS - May 22,2020
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Improving Declining CIBIL Score

Your CIBIL score has immense significance in determining whether you are eligible or not. If you have a CIBIL score of 750 and above, you can easily avail a loan at attractive interest rates. CIBIL scores are generated based on your credit history which includes your credit statements and payment records. An individual with a low score will be considered a risky borrower and lenders will be hesitant to approve your loan and might lead to rejection of your loan application.

Ways to stop your CIBIL score from declining

Apply for credit only when you need it

Personal loans are an easy way to avail instant cash. But ensure to apply for a loan amount that you will be able to repay in time. So, you need to avoid temptations at all costs, by putting the money to good use. You can use the loan amount to clear your outstanding bill and other payments. If you fail to make your loan repayments on time you will have to face severe consequences on your credit score. Thus, you need to be well aware of your finances and the capability of repaying the loan in a timely manner. Making this a habit will help you in managing your finances and payments in the long run and gradually help to improve your score.

Keep a low credit utilization ratio

The credit utilization ratio is the proportion of total credit card limit on your credit card. If your credit utilization ratio is over 30 percent you will be seen as someone who is credit hungry and hence, Credit Bureaus will reduce your credit score on breaching this limit, thereby reducing your loan eligibility. Hence, to avoid such situations, you need to make sure your credit utilization ratio is below 30 percent.

Pay your monthly outstanding debt in full

Make a list of all the outstanding debts and payments and as soon as you overcome your financial crisis, you can start clearing out all outstanding dues. Decluttering and organizing your finances, will help you in making payments easily. Doing this will lead you in a better situation where you do not have to worry about multiple pending payments and due dates.

Keep a track on your expenses

In times of financial crisis, when you run out of your monthly savings, you are tempted to max out on your credit card to get the money. This can be a good idea to overcome the lack of funds only if you use it cautiously. It’s best to keep a low balance and apply for more credit only if it’s necessary. Rather than having more cards in your wallet, consider using the old credit cards you already have. Also, ensure timely repayments to maintain a good credit score.

Check CIBIL score

Your CIBIL report keeps a track of your past repayment on loans and credit cards. The lenders make the final decision based on your score by considering your past credit behavior along with your present activity to determine your ability to repay the loan in the future. If you have a low CIBIL score, your loan application might get rejected or you may be charged with a high-interest rate on the loan. With a good CIBIL score, the lender gets convinced that you will be able to repay the loan on time. Hence your loan has higher chances of getting approved.

Check CIBIL Score

When applying for a personal loan, there are a lot of options for loan providers in the financial market. Do your research and compare your personal loan options to find lenders that you may be eligible for and can fulfill your loan requirements.

Make sure to do a CIBIL Score check and verify the report at least twice a year to identify any errors or misinformation. At Finserv MARKETS you can apply for a personal loan and get access to features like low EMI, minimal documentation, quick approval and disbursement of loan amount. Your online personal loan application can be approved within minutes and the loan amount can be credited to your bank account within 24 hours! Your credit score determines your creditworthiness; you can check CIBIL Score for free and access your customized Financial Health Check Report (FHCR) on Finserv MARKETS. You can also check CIBIL Score on Finserv MARKETS App for Free!

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.

Learn More About CIBIL Score
How to check CIBIL score by pan card
Components of Credit report
Why is Credit score important?
Interesting facts about CIBIL Score
Parameters that affect your CIBIL Score

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522