How to Improve your CIBIL Score?

Credit Investigation Bureau (India) Limited, commonly known as CIBIL, is India’s first credit score company. Founded in 2000, CIBIL maintains records of an individual’s monthly expenses concerning loans and credit cards. CIBIL prepares Credit Information Report and creates credit scores on the basis of the information provided by various banks and other financial institutions. 

The credit score plays a critical role in the loan application process. More often than not, Credit scores are integral to the loan application process.

• Make sure that all the dues are cleared well on time. Late payments can affect your score much worse than any other default. Your credit score gets better when all the payments are made on time.
• Try to avoid being a guarantee for a less creditworthy person. Your credit score will be affected in case he becomes a defaulter.
• Always try to avail of a mixture of credit with a higher percentage of secured loans in comparison to unsecured loans.
• Do not utilize the maximum limit of your credit cards every month. Always utilize only 40-50% of your available credit limit.
• Avoid applying for too many loans or credit cards in a short span of time. This is referred to as credit hungry behavior, and will not do any good to your credit score.

It is very important to maintain a good CIBIL score if you aspire to pursue higher education from abroad. CIBIL scores are the deciding factors for many financial institutions when it comes to the approval of your education loan. According to a CIBIL report, 79% of the people who have been approved to avail of a loan have a credit score of 750 or above. Follow the simple measures mentioned above in order to maintain a good CIBIL score and fulfill your dreams of studying abroad.

Best of luck!

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