26-Dec-2018 written by : FSI-Team
There are a lot of things which determine if your behavior and we tend to work a lot towards it. An excellent behavior gives you respect in the society and is good for mental health. There are many other behaviors which are important but are not obvious to the naked eye. Let's take financial behavior here as an example, your financial behavior is really important for maintaining a good standard of living and also for your mental peace.
There are many aspects which contribute to a healthy financial behavior; one of those is a good credit score.
A good credit score can help you in many ways, you cannot imagine. It can not only help you with a speedy financial product, but will also help you with landing you at your dream job, get you a dream house on rent, these days it can also get you married. This is one of the criteria’s of getting married, where the opposite partner demands to check if you are financially sane and if you are in debts. A credit score ranges from 300 to 900 and anything above 750 is considered to be a great credit score.
But is it that easy? Is maintaining a good credit score hard? I already know my credit score and it's bad, how do I go ahead a start building it up?
These are the normal questions which are asked by people when it comes to cibil score. The very first thing which you need to do is get a free credit score and understand where you stand as far as credit goes. Once you know where you stand on the report, you can start making these amendments to your financial decisions and it will get you where you aim for.
This is the most basic of you can do to start amending your cibil score. All you need to do is to remember you due dates of all your existing loans and make all your payments on time. This will not only help you get your score up, but you will be also saving on lots of financial hassles like, collection calls, late fees, interest on late payments, etc.
If you happen to hold credit cards, it's really hard to suppress your emotions when it comes to utilizing them. The key here is to maintain good credit utilization and try making all your transactions via your debit card or cash. Less credit utilization will help you get through to a healthy credit score in no time. This does not mean you should not use your credit card at all. Use it, but wisely.
Every financial transaction reported in the credit statement for at least 7 to 10 years. If there is an undergoing loan with you and you are planning to settle it, do not do it! This remark will remain for a very long time and can be acting like a barrier which would stop the growth of your cibil score. Instead, try closing your loan with the full outstanding amount, this will not only help appreciating your score, but will also have good remarks on your report.
Multiple credit inquires will lead to a dip on your cibil score. No matter how attractive the scheme is or you getting the best home loan interest rate do not apply for a loan until it's really required.
There are many other ways you can build your cibil score, but you will have to do a lot more than that.