When are you planning to apply for a loan or credit card first thing the bank can ask What is your CIBIL score? It’s a bureau who can collect all information on card utilization. The range starts from 300 to 900. These score ranges can explain your utilization, expenses, prepayment, payment, etc.
The lenders can check all the activities then get approval for your raised request. Those who want a good score they should start paying bills on time. There are various factors which can affect a my credit score of an individual let’s find out below points.
Your previous repayment detail should be clear otherwise it reflecting on your profile that can damage your credit score.
Avoid To Handle Multiple Credit Card
There are 100% chances to forget to pay all credit cards in the right time when you have carried multiple products, that’s why try to avoid and handle one at a time.
Say Big No For Guarantors
It’s a big risk when you are taking someone else’s responsibility to make payments of all credit card on time. If that person is not able to do or irresponsible in these things, then it can also damage your record.
Monitoring Your Score
When CIBIL score comes, one should always try to check credit report. Many times mistakenly they captured wrong data and the result you are in defaulter list. This type of mishappening would happen that’s why to try to check the report within one year or six months.
The less you can use your product, the more lenders feel happy to give you privileges. If you are using 20% of the limit, it shows responsible behavior as well as lenders also happy with your activity.
If Your Score Is Less Than 650, So What Will Happen?
To maintain a good and satisfactory score is not a big thing, but you should also aware such things as payment, repayment, expenses and save yourself from the defaulter list. You should understand, why they create a range and what will happen if you are getting less than 650 or more than 750?
Let’s find out the description of the ranges.
300 Score Range: If your score is 300 then not a single lenders can provide you any service. You are automatically out of the score calculation.
450 To 500 Score: It’s better than the first one but still not getting financial support from the bank. It’s an indication of improvement.
550 To 600 CIBIL Score: You should take care of your payment, repayment, and other activities so that the lenders can give you a loan as per your requirements. It’s a chance to improve CIBIL score and get financial support.
650 To 700 Score: Few banks can give you approval for a loan, but with the high-interest rate. They didn’t give you full privileges.
750 To 800 Score: The lenders are happy to approve your loan request. Your CIBIL score shows you know the utilization of the product.
850 To 900 Credit Score: It’s a high-score, and the bank can provide a low-interest rate, so that enjoy the benefits. This can show your responsible behavior of expenses, spending habits, and payments.