CIBIL SCORE: Credit Card Approval VIP Pass, Know how much it should be

Has this happened to you too? You applied for a great credit card with great heart, all the documents were also given correct, but still the bank rejected your application. You keep wondering where the mistake was made?

So understand, the mistake can not be in your application, but your ‘financial report card’ i.e. your CIBIL score. This is not just a number, but your credibility in the eyes of banks.

After all, what is this CIBIL score?
Understand in very easy language, it is a number of 3 digits, which is between 300 and 900. It tells how much discipline you have shown in repaying loans or credit card bills so far. Whether or not you pay EMI on time, you pay the credit card bill or not – all this reflects in your CIBIL score.

How much CIBIL score is necessary for credit cards?
When you apply for a credit card, the bank first checks your CIBIL score. This shows him how safe it is to lend money to you. Let’s know how much score is considered good:

• Above 750 (Excellent): You are the king!
  If your score is 750 or more, you are the favorite customer of banks. You will not only get a credit card easily, but will also get good credit limit and excellent offers.
• 700 to 749 (Good): Excellent!
  This is also a very good score. On this score too, most banks easily give you credit cards. Your application is very much likely to be approved.
• 650 to 699 (Average): The case is 50-50.
  This score is considered average. The bank will think a little on this. You may get a card, but maybe its credit limit is low. Or the bank can ask for some more documents from you.
• Below 650 (Poor): Danger bell!
  If your score is less than 650, most banks will directly reject your credit card application. This score suggests that you have made a lot of disturbance in paying earlier bills.

What to do if the score is low? (is the way!)
Do not be disappointed if your score is low. You can improve it:

1. Pay the bill on time: This is the most important rule. Always pay your EMI and credit card bills before the last date.
2. Do not be hungry for credit: Avoid using the entire limit of your credit card. Try not to spend more than 30% of your total limit.
3. Avoid applying again and again: If the application is rejected once, do not apply to another bank immediately. Applying every time has a little impact on your score.
4. Keep checking your report: Please check your cibil report once a year. There may be some mistake in it that is not yours.

Creating a good CIBIL is not a day’s job, this is the result of good financial habits. Improve it and make your financial life easier.