CIBIL SCORE IMPROVEMENT
Do's & Don'ts
Four Major Factors that affect your Credit Score
1. Payment history - How you pay your Debt or loan obligations ? Late payment, non-payment, minimum amount payment of Credit Card dues and overdues in principal, interest shall adversely affect your score.
2. Utilization Level of Credit Limit - Continuous outstanding level of credit card near the Credit limit level, increase in outstanding on month to month basis, large number of loans outstanding come in the way of good credit score as these features indicate higher utilization of credit limits.
Higher percentage of credit cards or personal loans
a balanced mix between the secured loans (such as Auto,
Home loan) and unsecured loan (such as Consumer Loans,
Personal loan, Credit Card) is likely to have a more
positive affect on score.
4. Many new loans sanctioned recently - Lots of recent bank loan queries and recent spurt in sanction & utilization of fresh loans point towards more dependence on debt and is not viewed positively.
Besides the above factors, in co-signed, guaranteed or jointly held accounts, one held equally liable for missed payments. Your joint holder’s (or the guaranteed individual) negligence could affect your ability to access credit when you need it.
Confused Borrower :
Borrowers and Guarantors are panicky, confused and nurse grievance against the CIBIL score with nowhere to go. Reasons are many. Some have a bad score and do not know how to improve it. Some do not have even the faintest idea as to how the score can adversely affect their loan taking ability. Others have settled a sticky loan but still their name appears as a defaulter in CIBIL list and neither the settling bank listens to them nor the prospective lender believes them. They are in typical stuck position. Some have paid regularly but have disputes on amount or interest rate and the disputed amount is not paid as there has not been any solution or the same is in legal domain and the bank notwithstanding the above dispute puts them in default list.
BankRuna.com shall assist you in improving your credit rating and other contentious issues relating to impaired rating. Register your query / grievance HERE.
Welcome to BankRuna.comRead more Comments