News India Live, Digital Desk: Have you ever heard from the bank, “Sorry, your loan cannot be approved”? When I asked the reason, I found out that your CIBIL score is low. Believe me, it is very heart-wrenching to hear this. In today’s time, CIBIL score is not just a number, but your financial reputation. If the score is above 750, then banks give you VIP treatment, and if it is less, then you have to face setbacks. But, do you know that the credit card which people often call ‘debt trap’, is actually That is the surest tool to improve your CIBIL score. If you use the right mind, let us tell you the 5 golden rules by adopting which you can increase your score quickly. 1. Do not pay on time (Repayment behaviour) in your CIBIL score. When to pay the dues. Give more importance to the “Due Date” of your credit card. Tip: Do not fall into the trap of ‘Minimum Due’. Keep auto-pay and do not squeeze the limit completely. 90% of us make this mistake. Suppose your card limit is Rs. 90,000 and the bank thinks that you are ‘credit hungry’. Try to use only 30% of your limit, that is, keep the expenditure within Rs. 30,000. 3. Don’t close old cards. Why is it harmful for CIBIL? If you have an old card which you do not use, do not be afraid of increasing the limit. (Increase Credit Limit) If the bank calls you and says “Sir/Madam, we want to increase your limit”, do not refuse. Advantage: By increasing the limit, your ‘Credit Utilization Ratio’ reduces. Example: Earlier you used to spend Rs. 25,000 in Rs. 50,000 limit (50% utilization), now the limit has become Rs. 1 lakh and the expenditure remains the same (so only 25% Use: Lower ratio means better CIBIL score. If you need money or want to get a credit card, then the bank checks your report on every application, and this reduces the score. Apply only when you are sure that you will get the card or loan.
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