Is your CIBIL score getting you down?
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Is your CIBIL score getting you down?

  • Highlights

  • Pay EMIs on time to keep a steady score

  • Pay off debts as quickly as you can

  • Use a personal loan to give your CIBIL score a boost

  • Be responsible about filing your taxes

Your CIBIL score is a three-digit number that summarises your credit history in its entirety. The score ranges from 300 to 900, where a score of above 750 makes you a worthy contender when it comes to financial matters. The higher your score, the more financially responsible loan providers consider you to be. It shows them that you are capable of repaying a loan in a timely manner.

When it comes to taking an unsecured loan like a personal loan, your CIBIL score is even more important. It builds credibility and trust about you in the lender’s point of view. This is not to say that you can’t get a personal loan with a low CIBIL score. Lenders may still approve your application, but may charge you a higher interest, since you will be considered a higher credit risk.
So, to get fast approval and a nominal interest on your personal loan, here are ways in which you can rectify your CIBIL score.

Make timely EMI payments

Delayed, untimely EMI payments have an adverse effect on your CIBIL score. The same goes for missing EMI payment deadlines. So, maintain a list of EMI deadlines and set reminders so that stay on track. You can set up an auto-deduction with your bank or maintain a separate cash reserve for EMI payments. This way, you won’t miss a deadline or find that you don’t have the necessary funds, both of which can affect your credit score.

Additional Read: Check Your Cibil Credit Score With These Easy Steps

Clear debts as soon as possible

If you carry outstanding debt over a period of time, it begins to reflect negatively on your credit score. So, instead of letting the debt lie unpaid, try clearing it as soon as you can by using a bonus, or earnings from an investment. Swift repayment will give your credit score a boost.

Flexi Loan Explained

Your CIBIL score and your Personal Loan

Lower the interest rate, lesser the money you repay on the loan you borrow; this is the simple logic behind unsecured personal loans. But lenders do not assign the interest rate arbitrarily. They consider your credit score – a measure of your creditworthiness – to assign you the interest rate for your personal loan.

Your credit score ranges from 300 to 900. The higher your credit score, the better are your chances of getting approval and favourable terms on your Personal Loan. Lenders like Bajaj Finserv usually mandate a credit score of at least 750 before processing your personal loan application.

Lenders prefer an applicant with a high CIBIL score because it demonstrates their ability to handle credit well. A low score, on the other hand, indicates a previous instance of loan delay or default.

If your CIBIL score shows you to be a high credit risk, you will be charged a higher interest rate on your personal loan, and vice versa.

How you can use the Personal Loan?


Build a steady income portfolio

Having a secure job assures you of having the necessary means to make EMI payments through the tenor. This in turn will boost your credit score. Apart from this, look at creating other sources of income via investments and/or income from a rental property. This can be diverted towards paying off debts.

File your taxes on time

If you are a regular taxpayer, this will add to your credit score too. Accounting for your income and expenditure, against your savings and assets will increase your worth in the eyes of a lender. So, ensure that you file your taxes on time and declare all the information that you are legally obligated to. Once you do this over a period of time, your credit score will reflect this in a positive manner. This is especially important if you are taking a loan of any kind. You might have to submit your tax receipts for the past few years while filing documentation.

Since personal loans are an easy and speedy way to access funds for varied needs, pay attention to your CIBIL score. Once you check your CIBIL score, and boost your score if it is low, take a Personal Loan from Bajaj Finserv. Here you can enjoy a flexible tenor, collateral-free access to funds, easy eligibility and flexible prepayment.

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