Importance of Credit Score in 2016

Are you aware of your Credit score? Every person should know their credit score no matter where they live. Credit score influences your borrowing capacity with major impacts overall on your financial growth. Suppose you’re looking to get a personal loan from a reputed bank in your locality. After you’ve made an application, bank now wants to know your credit worthiness to approve your application. A simple process which almost every institution does is to check your CIBIL Score. If you’re credit score is good, you’re bound to get loan at best rates or vice versa your application gets rejected.

Ways to Improve Your Credit Score: Numerous institutions emerged to cater the needs of individuals and businesses who suffer good credit score. In INDIA there are three institutions which provide credit score on different parameters to individuals. Maximum numbers of such request are catered by CIBIL In India. High CIBIL score is considered as an indication of good credit health, banks prefer to lend money to individuals with good credit score. Anything above 750 is considered very good score and the person is eligible for availing best offers from several NBFC’s.

Many agencies providing credit health management services face issues while serving their customers with pretty low credit rating. If a customer doesn’t have money to repay his loan then there are pretty fewer chances of credit score getting improved. Credit history is also an important parameter for ratings provided by such companies.

Simple steps you can take to improve your CIBIL score is to pay your dues on time and ensure you’re not using more than 30% of your credit limit. Using amount above the stipulated credit limit shows your instinct towards lower credit health which adversely affects your borrowing ability. People with low score cannot borrow from banks or other financial institutions and hence have to opt for getting loans with co-operative societies.

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