Loan Rules: Your bank will be ready to give you a loan in no time! Just remember these 5 golden rules..

Your CIBIL score is a reflection of your credit health. It shows how responsibly you've handled your past loans and card payments. A good score means bank trust and faster loan approval. Learn these 5 secrets that will keep your score above 750 under all circumstances. After this, banks will readily grant you a loan whenever you want.

Pay Bills and EMIs on Time

If you have taken a loan from a bank or use a credit card, the most important thing is to pay every bill and EMI on time. Even a single late payment has a negative impact on your report. Making timely payments automatically increases your CIBIL score.

Don't Spend Recklessly on Credit Cards
It's wise to use only 30% of your credit card limit. If you're using the full limit every month, banks consider you a high-risk borrower. If you must make a large purchase, pay before the billing cycle ends.

Avoid taking on multiple loans at once. Taking on multiple loans increases your EMI burden. You may miss EMIs several times, which can lead to a drop in your score. Therefore, if you need a new loan, take one only after clearing your previous one. This will give the bank confidence in your repayment capacity.

Consider before becoming a loan guarantor.

People often become loan guarantors for friends or relatives. However, if they don't pay installments on time, it impacts your CIBIL score. Therefore, do thorough due diligence before becoming a guarantor and ensure that the person is paying EMIs on time.

Don't Increase Your Credit Card Limit Frequently
Increasing your credit card limit isn't an achievement. It increases your expenses and the risk of missing EMIs. A high limit will make the bank think your spending habits are uncontrolled. Therefore, keep the limit within your income and needs.

Now, do you understand whether missing an EMI immediately lowers your score?
The answer is yes. Even a single default can drag your score down by several points. Closing your loan on time positively impacts your score and builds a reliable credit history.

Can your CIBIL score be checked for free?
Yes, you can check your score for free once a year on the CIBIL website. You can also check your score through apps like Paytm and Google Pay.

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