What factors affecting CIBIL Score ?

Defaults and Delayed payments Any defaults or delay in the payments in recent years impacts an individual’s credit score negatively

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High utilization percentage: The ratio of an individual’s total outstanding loan to the credit limit is known as utilization percentage

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If an individual’s utilization percentage goes down, then it is taken positively by the credit institutions.

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Whereas if an individual’s utilization percentage goes up, then the credit institutions take it negatively.

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Higher the number of credit applications: Higher the number of credit applications an individual files, higher it affects his credit score negatively.

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High percentage of unsecured loans: Secured loans such as home loans are far better than unsecured loans.

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Thus, building a high CIBIL score is a slow process and the individual must keep calm and should be consistent throughout the repayment process.

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