Avoid THESE Mistakes Which Results in Low CIBIL Score and Loan Rejection

To keep the CIBIL Score healthy, we must pay our full EMIs on time. But that’s not the only case. We have to take care of a few things which are also important. Many make such mistakes, which lead to low CIBIL scores and ultimately leads to loan rejection. If anybody wants to have a loan in the future, then let’s understand what mistakes we should avoid.

To follow a good trajectory, we need to focus on full credit card payment, balance utilization of credit, paying full EMIs on time, not opting for any loan applications back to back. These parameters define the credit score.

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Mistakes to Avoid: 

• Applying for many credit cards or loans in a short period of time causes several hard inquiries on your credit report, giving the impression that you are a risky borrower.
• It’s advantageous to have a good balance of secured credit, such as mortgages and automobile loans and unsecured credit, such as credit cards and personal loans.
• According to some studies, overdependence on unsecured loans might have a detrimental effect on your credit score.
• Unintentionally, mistakes or discrepancies in your credit report might cause your score to decrease. Check your report frequently for errors and file a complaint with the credit agency if you see any.
• Financial hardship is indicated by constantly utilizing a large portion of your credit limit or by maxing out your credit cards.

You must educate yourself about your credit score. If you don’t know anything or have queries, then there are many courses and even experts available in the market to guide and keep you updated. You can even get in touch with your personal banker.

(Disclaimer: Given the input is on an information basis, please seek professional advice.)