Find out how can you keep your credit score (CIBIL) high to avoid car loan rejections in India.
“Big Dreams have small beginnings.”
If you want to own a car with the help bank car loan, but for some reason, you don’t seem to have luck getting approval for your car a low CIBIL score could be the reason banks are unwilling to extend you a loan. Yes, banks offer you loans, but with the major eligibility criteria, CIBIL is to be one of them.
Let us know about the CIBIL score.
Banks use a credit score to estimate your creditworthiness. The high the profile score, the better your chances of getting a loan. In India, the CIBIL is very popular for any loan process. CIBIL is a credit information organization, and its score is a 3-digit number that ranges from 300 to 900. Banks have a standard rule of considering a CIBIL score of 750 or higher to be credit-worthy, whereas a score of 650 or less is low to give a loan.
The CIBIL Score is entirely based on your payment history across credit cards and loans.
How can I improve my CIBIL score?
- Get to know your score: To improve the score for a car loan, you just need to know your score. You can request online via the CIBIL website. Your score will be given by a credit information report, which is your credit history.
- Check your credit history: Go through the information carefully and highlight the errors. For example, you may have cleared the repayment of a loan, but still, it shows as open in the report.
- Communicate error: If there is an error, report it as CIBIL has a process for you to rectify it.
- Practice Wariness: If your history is error-free and your CIBIL score is low. You require to improve your creditworthiness.
- If you have any outstanding balance on any payment or loan, settle that first.
- Make sure you are not behind the repayments of loan and credit card bills.
- Don’t apply for too many loans as it affects the score.
- Use your credit card with caution – avoid the overuse of your card limit every month.
With these steps, you can improve your CIBIL score for a car, and one day soon, find yourself in the driver’s seat.