5 Factors Which May Affects Your CIBIL Score


Even though getting a credit card has become easy, it still requires a certain amount of verification. One of the main things that affect your online credit card application is your CIBIL Score. In other words, if you have a lower CIBIL Score, then it might prove to be a little difficult for you to enjoy the benefits of a credit card apply app.

A lot of financial consultants would tell you that the best way to improve your Credit Score is by closing your debt accounts. However, various other factors as well can have an effect on your ideal CIBIL Score for a credit card.

If you want to know what are these factors, then continue reading!

Credit Mix

In simple terms, a credit mix is the different types of credit accounts that a borrower has. It can include anything from a personal loan account to a credit card one. If you have an elaborate portfolio of different credit accounts, then there are chances that your CIBIL Score might not be compromised. However, for people who have only one type of credit accounts, the CIBIL Score is usually affected. It can also prove to be a challenge when you are looking to use a credit card apply app for convenient borrowing.

Usage Duration

When it comes to a credit card, the longer you have been using it, the better it is for your CIBIL Score. For people who often take new credit cards and close their existing ones, they are considered to be a risk factor by the financing institute. Besides, a lot of people do not pay their dues before closing a credit card. Therefore, if you already have a card and want to make the most of a credit card app, then try keeping it open for as long as possible.

New Credit Accounts

Another thing that can stop you from having a good CIBIL Score and using the credit card apply app is multiple new credit accounts. In case you are planning to borrow funds and have applied for a number of different schemes at the same time, then it can have a negative impact on your CIBIL rating. Therefore, do not open new credit accounts before closing the existing ones. Even if you have to, make sure that they are absolutely necessary.

Credit Utilization

When it comes to credit cards, there is basically an amount utilization trick that you should remember. Always make sure to stay around 30% of your credit card limit when it comes to your expenditure. It will allow the financing firm to understand that you are a safe transaction for the company. Moreover, since you are not borrowing an extensive sum of amount through the card or loan app, it will also not affect your Credit Score significantly.

Repayment History

The last thing which is the most common out of all the factors that affect your CIBIL Score is the repayment history. When a borrower has outstanding dues and skipped EMIs, then there are chances of his CIBIL Score taking a great hit. It will even stop you from enjoying the perks of a credit card apply app. Therefore, maintaining your payment system wisely is highly recommended. For this, all you need to do is make sure that your monthly EMIs are paid on time and the dues are closed systematically.

Bajaj Finserv is a leading NBFC which provide loans to the customers. It gives you pre-approved offers for many different financing services. The list includes alternative like business loan, personal loan, home loan, and EMI finance. 

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