Four Factors That Affects Your CIBIL Credit Score Negatively

Affects Your CIBIL Credit Score: In this page, we are sharing the four important factors that  Affects Your CIBIL Credit Score Negatively. So, please read this page to improve your CIBIL Credit Score.

Four Factors That Affects Your CIBIL Credit Score Negatively

In present days, the Indian market includes CIBIL which is very popular. For getting essential loans like home loan, car loan and personal or business loans, it happens with the help of Credit Score which CIBIL provides. For getting a credit score, CIBIL uses some scientific and unique method. In India, this credit score is accepted almost all finance companies.

Whenever an individual received a high CIBIL credit score then he or she can get the loan. It is all about a user’s financial profile, for getting a positively high score or negatively low score. Not only the user’s repaying capability, but CIBIL credit score also depends upon negative factors. This guide will inform you of the negative factors that affect your CIBIL credit score.

Affects Your CIBIL Credit Score Negatively

1. Full utilization of your Credit Limits:

CIBIL credit score is also related to the credit limits. Whenever users reach the end of the credit limit, then it refers that they reached upon high repayment responsibilities. It affects your credit score negatively. On the other hand, the lower outstanding credit balances on the user’s credit card will improve the score.

2. Defaults in Repayments:

Repayment history is caused by a low credit score which is the most important negative factor. The low credit score is caused, in the last two years, whenever users have missed or delayed installments of existing loans. The low credit score defines that you are financially unstable and incapable of repayment your existing loans.

3. Owning too many Credits Cards or Personal Loans:

Owning many credit cards show that users have burdened a lot of credits and also have to repay the loans. Personal and unsecured loans include high interest whereas secured loans don’t. Keep in mind that your credit score goes low if you have higher repayments.

4. Are you Credit Hungry?

At the starting point, new credit facilities include a large number of lenders and end up with getting an extremely low credit score. Before granting the loan, the bank agents are evaluating your profile, this practice would caution the lenders in forward.

Whether you want to restrict these 4 negative factors hurting your CIBIL Credit Score, you must prefer these 4 important negative factors.