The loan is rejecting again and again? These 2 ‘mistakes’ are sinking your CIBIL score

When we need a loan for a house, car or any other need, we go to the bank with great confidence. But many times the bank refuses to see our application. We do not understand where the mess is. In most cases, the real villain of this ‘rejection’ is our bad CIBIL or Credit Score,

The CIBIL score is nothing but a ‘report card’ of your money transactions. A score above 750 is considered a good report card. It tells banks that you are a responsible customer and it is safe to give you a loan.

If your score is less than 750, do not panic. This is not a stone line. You can just improve your 2 habits and take your score up like a rocket.

1. Golden Rule: Never forget any date
This is the biggest and most important rule to improve CIBIL score. Every EMI of yours (whether it is from phone or bike) and your credit card bill … always pay all these from the last date First Do

• Why is it necessary? About 30-35% of your score depends only on whether you pay your bill on time. The delay of a single day puts a ‘black spot’ on your score, which takes months to remove.
• What to do? Apply reminders in your phone. If possible, get the Auto-Debit facility in the bank, so that the EMI is cut on time and you never forget.

2. 30% ‘Magical’ Rules: Do not squeeze the credit card complete
Credit card is a feature, not empty checks. Suppose your credit card limit is Rs 1 lakh. This does not mean that you spend 90,000 or 1 lakh rupees every month.

• Why is it necessary? When you use most of your limit, it indicates banks that you are ‘hungry’ and perhaps in financial constraints. This makes your score fall rapidly.
• What to do? Always try to use only 30% to 40% of your total credit limit. That is, if there is a limit of 1 lakh, then keep your expenses only around Rs 30,000-40,000. With this, banks feel that you know how to manage your expenses well.

Just include these two habits in your life. Initially it may seem difficult, but in 5-6 months you will see that your CIBIL score is slowly moving towards the magical figure of 750, and next time you apply for the loan, the bank will not refuse you, but perhaps offer you!