Do you want to apply for a personal loan or any other loan soon? Then the first thing that you need to do is – check free cibil score online! Why?
It is because your cibil score is the mirror of your creditworthiness.
It informs your potential lender whether you have maintained a robust repayment history or not. If yes, you will have a strong cibil score, and a lower one if not.
What affects your cibil score?
1.Increased usage of unsecured loan types
You need to maintain a balance of credits like secured and unsecured to have a healthy credit score. If you have many credit cards and personal loans and no secured loan (home loans etc.), then your credit score won’t be healthy. You can check free credit report online after maintaining a balance of both credits to see it improving
2.Your payment record
Your credit score will tell your lender whether you can deal with the burden of an upcoming loan, and can repay it on time or not. If you have not paid any previous EMI on time, then it would negatively hamper your cibil score.
3.Higher credit utilization
If you have used more limits on your credit card, then it shows that you already have an increased burden of repayment. It may also lead to a lower cibil score and a prospective lender may not sanction a new loan request. .
4.Increased number of new accounts
If you have recently been sanctioned new credit cards and personal loans, then it shows that your loan repayment burden has increased. If you get the approval for these new accounts over a shorter period, later it will negatively hamper your cibil score.
Thus, before you apply for a new loan, you should always check free cibil score on multiple sites so that you are aware of if you have a higher or poor rating. This way, you can work on it, assess your financial profile and then take a call.