700: Financial Doors Open When You Reach That Magic Number
A bloom in our economy tends to increase in demand for a luxurious lifestyle among consumers. As a matter of fact, the upward demand in the market has resulted in the mushrooming of the credit card industry. However, when it comes to actually acquiring that luxurious lifestyle, certainly your CIBIL score comes into the picture.
In Case You Don’t Know CIBIL…
CIBIL is the abbreviation for Credit Information Bureau India Limited, is a company that records and maintains the financial history of its applicants. CIBIL score is a numeric data, that determines your credibility whenever any kind of financial aid application is made to banks, lenders or any financial institutions. As a result, the entire overview of an individual financial history is provided in CIBIL score.
CIBIL SCORE MATRIX
In a nutshell, the CIBIL score is divided into a certain range from 300-900 points. A score below 300 points is considered to be unfavorable as there is a chance of individual getting insolvent and risk of bad debts for the lender. While the score between 350-700 is considered to be an average score, and the score above 700 points is considered to stand a major chance of getting the loan application sanctioned from the bank.
The magic score of 700 points, reflects a crystal clear credibility of an individual to repay the loan along with the availability of sufficient assets to mortgage, if the need arises.
Factors To Reach 700
Often very few actually make an effort to understand the mechanism of CIBIL score and out of the handful who know, stick to the false notion that paying of timely utility bills would help in to get a decent CIBIL score. Timely bill pay is just another parameter, and on a macro level, following are some of the parameters that affect CIBIL score-
• Periodic Credit Report Evaluation
• Lack of Credit Card Usage
• High frequency of Credit Limit Usage
• Failure for timely loan repayment
• Duration of debt recovery
IMPROVE YOUR CIBIL SCORE
One can easily manage and improve their CIBIL score by following some simple techniques. CIBIL score, although is managed by the external source, are completely dependent upon the way you maintain your credit history. To ensure that your credit score goes above 700, ensure that all bills are paid before the due date, the monthly installments are paid off and in case of any loan, make sure you pay it as soon as possible. Similarly, keep a check on your credit report and as far as possible, try to limit your credit spendings on futile things. Focus on paying off your credit card bills on time as well.
The Point Is…
Your CIBIL score is going to occupy a pivotal role when it comes to sanctioning of loans. So instead of last minute hassle, it is always advisable to observe a solid routine in order to increase your CIBIL score to 700 and beyond.
Once you cross 700, you are entitled not only for approval of loan application, but also to perks of low interest rates provided by creditors. Start your good habits today and get your free CIBIL score estimate from us with our calculator.