5 Ways to Keep Track of your CIBIL Score
- 17 June 2016 | 953 Views | By Mint2Save
It is impossible to think of enjoying any credit facility if your CIBIL or Equifax Score shows bad results. Your CIBIL search starts with a -1 or 0 score, and starts getting a shape once your loan or credit card starts. It can go to as high as 800+ and make the banker feel confident, safe and eager to give you a loan. However, there are instance where, even the loan was satisfactorily dealt, the CIBIL score has fallen drastically. Ignorant bankers, arrogance of customers and systems failures are a few reasons attributed to this. The sufferer, is however, only one: the borrower. In this article, we brief up about the 5 things you need to keep a track on to maintain a respectable CIBIL score.
- Prefer Large Amount Loans/Credit Card: A lot of government schemes recently popped up, giving up smaller amounts of loans to almost anybody. Do not fall for these loans. Neither do accept credit cards that offer smaller limits even though carry a huge brand or rewards with them.
- Do not miss any EMI: For any lender, the previous loans or other borrowings of the borrower do play a crucial role in deciding whether to give them loan or not. This idea can be shrieked to a very small phrase: pay your EMIs on time.
While through ECS, banks make sure that they recover their money on time and do charge huge penalty when the ECS demand is not satisfied, it is required that the borrower is more aware of the repayment.
3. Do not leave interest served in Overdraft: A lot of people prefer overdraft over loans as they can take as much amount as needed and have to take care of the interest part only. The idea of overdraft is quite popular with manufacturing firms and trading entities. It is slowly becoming a hit among those having Fixed Deposits, LIC policies and NSC’s which can be kept as securities and enjoy a credit facility over it.
A lot of people who avail these overdrafts do not serve interest in these limits thinking that the bank has their deposit and need not worry over it. Pretty correct, but serving up the interest is always recommended. This way, you can keep a track on
4. Enrich all available data: While the loan system has become highly smart and automated, it is the responsibility of the lender that they enrich all your data in their systems. In this manner, you not only present yourself as a genuine borrower, but
5. Loaned and Vigilant: Never Ever forget that whenever you take a loan, the lender is not doing a favour to you. You are not only paying the processing fees and other charges, but are also the one servicing the interest.
The banking system is managed by humans and it might do some blunders when it comes to your loans. Interest can be charged when it shouldn’t be, your account can incur miscellaneous charges on grounds such as folio management, review etc. Keep a track on this charges and you have right to question your bank on every unexpected charge that your loan account occurs. Enable net banking and monthly review for any charges except the interest charged and EMI.
CIBIL score is the benchmark for taking any loan, you have a score above 760, the bank would love to have you as their valued, your score down, keep a list of options ready and handy.