When a lender checks your credit history and finds that you have a higher cibil score, it may then sanction your loan application.
Yes, when it comes to loans, especially unsecured, the significance of strong cibil score can’t be ignored.
Not only it gives you a quick loan approval but at a lower rate to help you pay lower EMIs.
But what if you have a lower credit history and want to keep it higher? You can follow some tips and do that. Know more in this post now!
Always pay your EMIs on time
Paying your EMIs for ongoing loan EMIs and credit cards can help you have a robust credit score. Thus, don’t make delayed payments and also don’t default.
Don’t borrow too much
You may have the loan eligibility for a higher loan amount. But it does not mean applying for the highest amount. Why? Borrowing too much may lead to non-payment of EMIs on time. And it may affect your cibil history and lead to a lower score.
Must Read: How To Check CIBIL Score Online in Just 4 Simple Steps?
Maintain a mix of credits
When you have a mix of unsecured and secured loans, then it means that you will have a higher credit score. Hence, always maintain a mix of credits in your credit history.
Keep a check on your credit history
You may have incorrect entries in your credit history that you may not be responsible for. Hence, it becomes crucial to get it resolved before applying for a new loan.
Avoid applying for many loans at a time
Once you apply for a loan, then you should wait if you are getting the loan approval or not. If not, then you should avoid applying with many lenders at a time. It is because it will lead to many hard enquiries on your credit report. In turn, it will drastically reduce your cibil score. Thus, you should wait for at least 6 months before you apply again. It will help you consistently maintain a robust credit score.
By considering these vital aspects, you can keep your credit history and score up and healthy!
Additional Read: Remember These Points To Boost Your CIBIL Score
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