Tips To Keep Your CIBIL Score High To Avoid Car Loan Rejections

Find out how can you keep your credit score (CIBIL) high to avoid car loan rejections in India.

Tips To Keep Your CIBIL Score High To Avoid Car Loan Rejections

“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?

  1. 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.
  2. 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.
  3. Communicate error: If there is an error, report it as CIBIL has a process for you to rectify it.
  4. 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.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay on op - Ge the daily news in your inbox