5 Habits to Follow for Good CIBIL Score
Your credit history reflects more than your spending behaviour. It tells the banks and institutions about your financially stability while considering credit card or loan application. Thus, it becomes mandatory to maintain a good CIBIL score. A credit score of 700 and above will land you up better chances of securing a loan. Following are the habits to follow for strengthening your credit score.
- Pay Complete Bills on Credit Cards: You can either make a minimum or entire payment for credit card bill, with latter getting you a better credit score. Make the payment in one go, and your credit report won't reflect any overdue amount.
- Control your Credit Hunger: Continuously applying for loans will affect your CIBIL score. Only take a loan when you absolutely need credit. You may just take a small loan if you intend to generate a credit history, but otherwise avoid this habit from becoming a regular one.
- Timely Payments: As a golden rule for sound credit activity, you must make timely payments for loan EMIs and credit card bills. If this practise is followed then you will get the best credit score. You may consult a financial advisor for a proper planning for utilizing monetary resources to manage payments.
- Don't Shut Out Credit Cards: Ideally you must use your credit card wisely so that in case a loan is needed in future, you have a nice credit score to bank your loan application. If you eliminate credit cards then generating a fine credit history may be a no.
- Watch your Spending: Earning more and spending lesser is a mantra for financial stability and a good credit score as well. When spending are greater than earning then need for borrowing rises, and that would lead to more debt collecting or emergency funding.