CIBIL Score defines your ‘Credit Score’ which is a creditworthiness rating of an individual ranging from 300-900. TransUnion CIBIL provides your credit score, the most favoured credit bureau in the country, which came in the year 2,000. This company traces and keeps all the lending records of an individual.
True Meaning of CIBIL Score
CIBIL Score is the creditworthiness rating of a person which defines their borrowing and repaying capability. Most lenders rely on CIBIL Score, a three-digit number which ranges from 300-900, to know an individual’s credit repaying capacity. The more your score is close to 900 the more easily you will get a loan, that too with low-interest rates. The possibility of your loan application getting passed increases with a high credit Score. But what happens if you miss an EMI due date What if your EMI bounces after getting a loan? How will it affect your CIBIL? Know here.
What Happens To CIBIL Score If You Miss A Payment?
In General, there are several reasons by which your CIBIL Score gets affected, but the most negatively affecting issue is missing any type of credit payment, whether of a business loan, buy now, pay later account, credit card, or any other.
Here are the major consequences of missing a loan payment on CIBIL:
- Your credit Score dips significantly if you even miss a single loan payment.
- Missed payments will be permanently marked on your Credit report and the other lenders will be able to see it if you apply for a loan in future.
- Your loan application will likely get rejected if you are missing your EMIs, even occasionally.
How To Improve Your CIBIL Score?
- Make all your credit payments on time.
- Make payments on outstanding amounts not on a partial basis.
- Keep your monthly credit utilisation ratio down to 30 per cent. And if required, then don’t push it above 50 per cent.
- Restrict yourself from applying with several different lenders for loans.
- Do not make frequent loan applications in a short time, even with the same lender.
- Subscribe to CIBIL services and keep a record of your credit score on a monthly basis.
- Check the reasons for the ups and downs on your credit report.
If you miss a payment then ensure it gets paid as soon as possible.
- Old credit accounts always benefit you, so create a powerful credit age.