Cibil score: Nowadays, banks and financial institutions can check your CIBIL score immediately. The CIBIL score explains how many times you have paid loans and credit card bills and EMIs. If your CIBIL score is bad, you may find it difficult to take a loan, or you may get a loan at expensive interest rates.
If your CIBIL score has deteriorated, you do not need to panic. Some steps can be taken to improve this, and over time it may improve. Let’s know, the loss of poor CIBIL score and ways to improve it.
Damage of poor cibil score
If your CIBIL score is bad, you may have difficulty in getting a loan. Also, if you get a loan, you may have to pay expensive interest rates. This not only affects your financial decisions, but can also affect the acceptance of loans and credit cards in the future.
Know here some major disadvantages that can occur from a bad CIBIL score:
- Decrected of loan: You cannot get a loan due to poor CIBIL score.
- Expensive interest rate: Despite getting a loan, you can get a loan at higher interest rates.
- Problem in acceptance of credit card: You cannot even get a credit card due to your poor CIBIL score.
How long does it take to improve the CIBIL score?
It takes a long time to improve it when the CIBIL score is bad. This score may be affected by not paying EMI or credit card bills on time. Even if you miss EMI and pay it later, the CIBIL score will not be right.
Your CIBIL score may take about 18 to 24 months to improve, during this time you will have to pay your credit card and loan EMI on time. This process can take time, but it can improve it by being patient.
Impact of getting loan default
If you have defaulted the loan, it cannot be hidden from the next bank. Whether you have defaulted a loan in a bank, it is clearly visible in your CIBIL report. When you go to get a loan from another bank, the CIBIL score will be checked. If your CIBIL report contains the default information, then you may have difficulty in getting a loan.
Ways to improve cibil score
You have to take some steps to improve your CIBIL score. Here are some methods, by adopting which you can improve your CIBIL score:
- Pay the bills on time: Timely pay credit cards and other small and big bills. This can improve your CIBIL score gradually.
- Fill the loan EMI on time: Filling the loan EMI on time will improve your CIBIL score.
- Improve CIBIL score by taking a loan on FD: You can also improve CIBIL score by taking a loan on FD (fixed deposit).
- Correct use of credit card: Always repay the credit card bill on time and use it according to the limit.
- Pay on time: Do not keep the bill till the last date of the bill, pay before that. This will cure your cibil score quickly.
What to do after repaying the loan?
After repaying the loan, an important step is NOC (No Objection Certificate). Many people do not take NOC even after repaying the loan, so that their loan is not close and it affects the CIBIL score. Whenever you repay the loan, take NOC from the bank and also get your CIBIL score updated. If you are turning off the credit card, do not forget to even take NOC.
conclusion
The correct CIBIL score is very important to take a loan from any financial institution and to approve the credit card. If your CIBIL score has deteriorated, there is no need to panic, it can slowly improve. You just have to pay bills and EMIs on time, and do not keep any bills till the last date. In addition, taking NOC after repaying the loan and the correct use of credit cards can cure your CIBIL score quickly. So, if you want your CIBIL score to always be good, it is necessary to pay on time and correct financial management.
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