5 Factors That Can Affect Your CIBIL Score

Missing out payments of credit card bills affects credit score severely. Several such bad credit behaviours can lower your CIBIL score. Have a look at some common factors that affect your credit score.

  • No Loans: You may feel financially independent or able to get through life without any loans. However, when it comes to your credit score, having no credit history is not ideal. A balanced combination of credits such as loans and credit card spending will improve your credit score.
  • Not Utilizing your Credit Card: If your credit card shows no transactions, it will render your credit file as stagnant and lower your CIBIL score. It is best to keep your credit card active and simultaneously adhere to its credit limit.
  • Too Many Credit Cards or Loans: While having no loans and credit card spending is a curse to your credit score, possessing too many of these may also hamper your CIBIL score. If your finances are already overburdened by borrowings, then banks shall not consider you as the right candidate for loaning ahead, and such behaviour will also impact your credit score.
  • Often Surpassing Credit Limit: If you cross your credit limit too often, it will affect your credit and give an impression to lenders that you rely solely on credit borrowing. Thus, you must avoid choosing a high limit on credit card unless you need it, and keep a check on using the credit, maintaining an optimum balance.
  • Not Making Payments: It is universally true that not making due payments will bring your credit score down. Be it a past or current debt, make diligent payments and develop a good credit score. You can buy your credit report online to check for you credit history information.