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You must be thinking that a good credit score makes your financial credibility rise like a hot balloon, and we would like to tell you that you are thinking in the right manner. Apart from low-interest rates on loan and easy mortgages approvals, a good CIBIL score provides you with various other benefits. But it is not so easy to avail all these benefits as the CIBIL score of any individual is highly prone to getting affected by various factors. Additionally, you have to play very smartly to fetch a good CIBIL score.
In order to upkeep with all these factors, an individual drains out most of his resources. In the absence of proper information, people start paying attention to anything and everything related to CIBIL when aiming for a high CIBIL score. The situation gets worse when an individual focuses on more over those factors, which do not even play any role in your CIBIL score and overlook the essential one. The end-result is a low CIBIL score and high frustration level, as the individual thinks that he has made so many efforts which yield-out no results.
That is why proper information is an absolute necessity when you aim high for good CIBIL score. The Internet is flooded with various posts about the factors that affect your CIBIL score but no one tells you about the factors which have no significant role in your CIBIL score. Well, if you are also looking for one such post, then your search will end here.
What actually affects- Taking so many investment policies does not affect your CIBIL score, but having so many credit cards might have effects. When an individual has many credit cards with him/her, they often increase credit burden over him and fails to make the payment on time. This leads to card settlement in some cases. A card settlement is a thing which affects your CIBIL big time. So, buy a credit card intelligently.
What actually affects- A bounced cheque that was actually a loan repayment or any EMI affects your CIBIL score negatively as it indicates that you have missed one of your repayments. CIBIL keeps a track on all your loan repayments and seeks timely payoff. If due to any reason including cheque bounce, it gets delayed, then it will hamper your CIBIL score.
What actually affects- Though the number of savings accounts doesn’t affect your CIBIL score, number of loans availed actually affects it, as many loans indicates that you have a high debt burden over you.
What actually affects – The number of transaction and maximum limit spent by your credit card actually matters. If you are spending more than your credit limit and seeking credit from your card provider again and again, then it will affect your CIBIL score in a negative manner.
What actually affects- Missing your loan installment or credit card payment will surely affect your CIBIL score as it will confirm the fact that you are not so regular in your credit payments. When you miss your loan payments, it shows a negative growth in your CIR.
What actually affects- Though the change in income doesn’t affects your CIBIL score, change in spending habits might affect your CIBIL score, as if you continue spending like before even after experiencing a salary dip, then you might be due with credit repayments. So, it is always suggested to have spending habits like your income cycle. If your income has reduced than before, reduce your number of transactions made by the credit cards as well.
What actually affects- Your CIBIL score will be affected by the change in credit status. A “settled” status is likely to have a negative impact on your CIBIL score. However, “closed” status has a far positive impact. Try to transfer your “settled” to the “closed” one and take the delight of a high CIBIL score.
What actually matters- Being denied the loan and credit cards does not affect your CIBIL score, but being denied to give a “Closed” deal might affect it. Closed status of any cardholder signifies that the cardholder doesn’t have any dues pending and gets a clean chit from the bank. If the bank denies to give you a “Closed” status then you have to be satisfied with “Settled” status, which has a negative impact on your CIBIL score.