Credit Card is in high circulation in recent times. In today's time, people prefer to use more credit cards than cash, whether it is a restaurant bill or a grocery bill. The availability of credit cards has become much more comfortable in today's era. If you are a profession, you will obviously have to have a phone call on behalf of the banks on credit card offers. Bank workers also talk about giving you lifetime free credit cards by offering you all kinds of free offers. But do you know that your CIBIL score for a credit card needs to be better? Banks give you credit cards only when your CIBIL score is good. CIBIL score to do well 30/100 The formula of 25/20 is necessary.
What is CIBIL Score
Cibil score is also called credit score. It is determined by three points. This shows whether the loan you have taken has been paid in time or not, and whether you have paid the entire interest or not. All this information is in the CIBIL score. The CIBIL score can range from 300 to 900. The higher the credit score, the better it is considered. The credit score may weaken even when you default. Generally, between 700 and 900 are considered to be better CIBIL scores. It is very important for any person to get a credit card to improve his CIBIL score. This is a parameter of the person's old loan. This shows the past credit history of the person. He said that banks also see bank deposits in addition to CIBIL scores to give credit cards. Even if the CIBIL score is bad, the credit card can be found in the credit card applicant's relation with the bank is good.
How to Improve CIBIL Score
You have to pay attention to some essential things to strengthen your CIBIL score. In these, you can reinforce your CIBIL score by paying loans on time, avoid taking a variety of loans together, not allowing credit limits to be crossed. Banks can give credit cards on account balance basis or on fixed deposit (FD) basis despite the failure of the CIBIL score. Suppose your account is in HDFC Bank, and you need credit from that bank, banks ask you to keep a minimum balance till the card is issued. Many times banks give credit cards in lieu of FD. However, you will get a credit card from the same bank in which your FD is in the bank.
You can know the CIBIL score sitting at home online. If you have made several applications for credit cards and loans, it affects your credit score by 25%. So avoid them.
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