CIBIL score is a three-digit number summarizing your credit history. Financial institutions check this score to gauge your creditworthiness for loan approval.
A high CIBIL score can help you to get:
– Quick loan approval
– Larger loan amount approval
– Longer loan tenure
– Reduced interest rate
Timely bills and EMI payments will boost your credit score and save you from late payment penalties.
The major benefit of opting for a longer loan tenure is smaller, more manageable EMIs. This will reduce your chances of defaulting.
Credit Utilization Ratio (CUR) is the credit you've taken divided by the total credit available. It’s advisable to use less than 30% of the credit limit.
Multiple loans can portray you as a credit-dependent individual. Consider repaying your ongoing loans and then applying for a new one.
Your credit score may be low because of some error in the report. Check your credit report regularly and keep it updated.