29-Dec-2018 written by : FSI-Team
Are you one of those who like to be in the elite group of people? Do you like to show off your luxury wears and brag about how much you love to live a luxury life? What about your financial well being? Do you also show off your finances to others? What about your credit score? Where do you stand as far as credit score goes? Do you know how the banks and lenders look at you? No, heard this term for the first time? Do not worry; we are here to clear some air for you.
Your cibil score is one of the most important things in your life. The three digit number will determine if you are credit worthy or not. Sometimes you have to work hard towards building a good credit score. The cibil score ranges from 300 to 850. And anything above 750 is considered to be a good score to avail a loan or a credit card. What makes the score excellent is anything which is an 800+. There are only a handful of people who achieve this number and to maintain this number is even tougher.
It takes a lot of time to build a healthy credit. a good cibil score is not build overnight. People with great scores always have started planning and sorting their finances early. They understood this credit game and started baking on it from an early age. If you are thinking you are too old to start fresh, do not worry you can start even today. All you need to do is to set budgets and adhere to it. If you have an opportunity to avail a credit card, do apply for one and make sure you use it wisely. Also most people check their score from time to time and you can do that as well by availing a free cibil score.
Credit cards can be one of the main boosters when it comes to enhancing your cibil score. If you have a couple of credit cards with you, and due to your bad spending habits you plan to close them, do not make such mistake. Maintaining a credit card can give you that extra boost to get your score up. The older the credit card account the better it will be for you.
This is the most basic of what you can do to reach the 800+ league of cibil score. Budgeting your finances will not only help you sort your finances but will also give you a clear idea on how to act on the budget plan.
Once you have set your budget and you know you are financially sound, avoid making hard inquiries on your credit account. No matter how tempting the offer could be of a latest credit card, if you don’t need it, simply deny the call and avoid making a hard inquiry. A hard inquiry will not only be in the report for a long time but will also hamper the score.
Have a cap on your credit limit, do not over use it. Having financial backup as an option is absolutely fine but do not fall for such gimmicks. You open your net banking and see that you have a pre-approved personal loan of around 5 lakhs, do you avail it just because it’s available? No, you keep it handy for whenever you need it in the future. This way you are not overusing the credit.
It is not rocket science to adhere on finances and habits to achieve an 800+ score.