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
High utilization percentage:
The ratio of an individual’s total outstanding loan to the credit limit is known as utilization percentage
If an individual’s utilization percentage goes down, then it is taken positively by the credit institutions.
Whereas if an individual’s utilization percentage goes up, then the credit institutions take it negatively.
Higher the number of credit applications:
Higher the number of credit applications an individual files, higher it affects his credit score negatively.
High percentage of unsecured loans:
Secured loans such as home loans are far better than unsecured loans.
Thus, building a high CIBIL score is a slow process and the individual must keep calm and should be consistent throughout the repayment process.