Factors affecting your cibil score improve credit card loan

 

Factors affecting your cibil score

1.       Credit history : It is most important factor. Lenders watch it and assumes it that you are a very old or not old customer, it makes more believe on you if you are older in taking credits and making time to time repayment.

2.       Credit utilisation: credit utilization means utilisation of credit limit which you can get. If you use full credit limit, it impact negatively on your creditworthiness.  If you use less credit then your creditworthiness will be increased as you are not credit hungry.

3.       Credit type: if your credit is secured then your credit score will increase with high speed, if your loan is unsecured than your credit score will increase slowly.

4.       Payment consistency: if you are making your payment on time, then there is no problem with your credit score, everything will be in favour of your credit score.

5.       Credit mix: if you have taken just one type of many loan then it may be negative to your credit score. Make sure your credit may in mix of all type of scores, like secured and unsecured, credit card, personal loan, home loan, car loan, consumer loan, gold loan etc.

6.       Failing of guarantee: If you are in guarantee of your friends loan. And he is making default in his payment; this will give negative score to your credit score too. So be escaped when you are asked to provide loan guarantee, otherwise you will be in trouble which leads no profit.

7.       Making loan enquiry multiple time: if you are making loan enquiry consistently on banks and non banking finance company, it will show your credit hungry behaviour, this also makes you credit score lower than it may be.

8.       Making minimum payment only : IF you are making only minimum payment than it will not increase your credit score in comparison to making full payment on time.

9.        Making idle a credit card : If You are using multiple credit cards, then it may be chances that you are not using specific credit card from months, then it will decrease your credit score, please do at least inr 10 utilisation, so that single entry will be happened.

10.   Foreclosure of loan: if you foreclose your loan, then it tends to loss of interest to your lender, so it is taken as negative point. Kindly do some research and invest you excess money in mutual fund, then your loan will not cost too much you.

C Closing Old Credit Account: if you close your oldest credit card then your credit history will become less than earlier. because cibil only takes good score only in active credit cards. So please try not to close your oldest credit card.