If the CIBIL score is low then your work may be messed up so it is very important to have a good CIBIL score for the loan. When your CIBIL score is good, then banks will give you a loan against the credit card. The 30/25/20 formula is essential for the CIBIL score.
The use of credit cards has increased very rapidly in recent times. In the current era, people prefer to use credit cards more than cash, from grocery bills to restaurant bills, everything is being paid with credit cards. Keeping in view the demand for credit cards, their availability has also become quite easy. Employed people keep getting calls related to credit card offers from banks.
Bank employees give many free offers and also talk about giving lifetime free credit cards. But if the CIBIL score is low then your work may be messed up, so it is very important to have a good CIBIL score for the loan. When your CIBIL score is good, banks will give you a loan against the credit card. The 30/25/20 formula is essential for the CIBIL score.
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Manikaran Singhal, Certified Financial Planner, and SEBI Registered Investment Advisor, Goodmoneying.com said, “It is very important for any individual to have a good CIBIL score for a credit card. It is a parameter of the old loan of the individual.
This shows the past credit history of the person. A credit card can be obtained even if the CIBIL score is poor if the credit card application has a good relationship with the bank. He said that in addition to the CIBIL score, banks also look at bank deposits to issue credit cards.
What is CIBIL Score:
CIBIL score and credit score are the same, it is decided by three digits. The CIBIL score can range from 300 to 900. All the information related to loan payment is available in CIBIL Score. The higher the credit score, the better it is considered.
How to improve Cibil Score:
To improve the CIBIL score, some important things have to be taken care of Avoid taking multiple loans at once, pay off the loan on time, don't let the credit limit drop.
Jitendra Solanki, a certified financial planner, says, "Banks can offer credit cards on the basis of account balance or on fixed deposit (FD) basis even if the CIBIL score is poor." For example, if you have an account with ICICI Bank and you want credit from that bank, then banks ask you to maintain a minimum balance till the card is issued.
However, you will get a credit card from the same bank in which you have your FD. The importance of a credit score can be gauged from the fact that if it is strong then your chances of getting a loan increase further.