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11 November, 2022


4 Reasons Why Your CIBIL Score Is Low?

A poor CIBIL score might happen for a variety of reasons. Both self-inflicted mistakes and bank faults can lower a borrower's score. In general, errors committed by banks include, among others, sending inaccurate information to CIBIL about a borrower and failing to update records. An individual's behavior is the primary component that determines his or her CIBIL score. Borrowers' ratings might go up or down depending on how they manage their money. The majority of score declines are caused by borrowers' prior behavior.

Some of the common errors that borrowers make are:

1. Unpaid Credit Card Debt - Some borrowers just pay the minimal amount due each month on their credit card payments, leaving them with an unpaid balance. What they fail to understand is that this might lower their credit score.

2. Applying for Too Many Loans/Credit Cards - If a borrower submits an excessive number of loan or credit card applications, each time a bank runs a credit report or credit score in order to process the loan or credit card application, it is classified as a hard inquiry. The score may be lowered if there are too many challenging questions.

3. Excessive credit use - If a borrower spends more than 30% of his or her credit limit, it will have a negative impact on his or her credit score since it demonstrates a significant dependence on credit.

4. Repayment delays - If a borrower is late on an EMI payment, it will be reported in their CIBIL report, which will lower their credit score. Repayments are one of the crucial elements taken into account when determining credit scores.

Conclusion

Try to overlook these minor mistakes so that you can raise your CIBIL score. Your behavior might affect your score both positively and negatively. To assist you raise your CIBIL Score, PayRupik offers quick personal loans with competitive interest rates.

Call: Customer Service Number: 022489-30118, Complaint Number: 08047181465, and

Email:[email protected] to get more information about the personal loan.