Reasons for Low CIBIL and How to Improve CIBIL Score

Some of the Reasons for Low CIBIL Score :

  • Bad Repayment History of Credit Cards / Loans
  • Over Utilization of Credit Card Limit
  • Settelment of Credit Card Outstanding Amount
  • Settlement of Your Loans
  • Too Manly Credit Cards / Loans
  • Closing of Oldest Credit Cards
  • Multiple Enquiries of Credit Cards / Loans

How to Improve CIBIL Score

  • Pay Credit Card Bills within Due Date
  • Pay Existing Loans EMIs as per Due Date
  • Never Excceed Credit Card Limit Morethan 30% of Card Limit
  • Never go for Settlement of Loans / Credit Card Payments
  • Use Oldest Credit Card always and make the payment within due date
  • Never Keep Credit Card Outstanding Amount (including Late Fees, Penalties etc.,)
  • Don't Apply Credit Card / Loans if it is rejected once, understand the reasons and then if you are eligible