Whenever you apply for a loan, the first thing that is seen is your CIBIL score. This makes it easier for banks to understand whether you will be able to repay the loan on time or not. If your score is good, you can get a loan easily and with a better interest rate. But if the CIBIL score itself is bad, then there may be difficulty in getting a loan.

First, know how much the CIBIL score is good.
The CIBIL score ranges from 300 to 900. If your CIBIL is 750 or more, then it is considered good. The closer it is to 900, the easier you will get a loan and you can also negotiate a lot on the interest charged on it. If your CIBIL score is between 550 to 750, then it is considered fine. In such a situation, banks may refuse to give you a loan and may ask for some collateral. If your score is less than 550, then forget about the loan, because it is considered bad and no bank will be ready to give a loan on it. Let us know 5 ways, by which you can improve your CIBIL score.

1- Keep paying every loan EMI on time
Loan default has the biggest impact on CIBIL. Even if you miss one or two EMIs of your loan, your CIBIL can be affected. This may cause you trouble in getting a loan. But if you pay all the EMIs on time, then your CIBIL will remain good and every bank will have full confidence in you to give you a loan.

2- Avoid hard inquiries of CIBIL again and again
Many times people apply to different banks to get a loan and take a loan from the bank from which they get a loan at a lower interest rate. Let us tell you that if you have applied for a loan in many banks, then your CIBIL score will be checked by each bank. When a bank or NBFC checks your credit score, it is called a hard inquiry and this affects your CIBIL.

3- Do not increase the credit card limit again and again
When someone gets an offer from the bank to increase the credit card limit, he is very happy and immediately accepts the offer. Keep in mind, a credit card is a kind of loan, so do not increase your loan limit without any reason. Many times people themselves request to increase the limit. If your limit is high, then it is possible that you will make a lot of purchases from it or maybe you will buy many products and make EMIs. This will affect the CIBIL and the bank will feel that you do not have enough money, which is why you are taking all the things on EMI.

4- Use only up to 30% of the credit limit
Suppose your credit card has a limit of Rs 1 lakh, but this does not mean that you keep shopping for Rs 1 lakh every month. Doing this can affect your CIBIL. You should not use more than 30 percent of the credit card limit. In this way, if your card limit is Rs 1 lakh, then try to shop only up to Rs 30 thousand from it.

5- Do not keep taking loan after loan
To get a loan easily, the first thing you have to do is to avoid meaningless loan offers. Seeing your good CIBIL score, everyone will be eager to give you a loan, because it is expected that you will repay the loan easily. However, if you take more loans, then this also shows your poor financial condition, due to which the CIBIL score can deteriorate. So you should avoid taking more loans.

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