The whole world is taking cheap loans, but you are not getting it because your CIBIL score is not complete, so let’s learn personal finance knowledge today in which we will know how you can build your credit, and if you have built it then how can you make it strong. Let’s find out.
Look, there are 3-4 ways by which you can start building your CIBIL score, if you don’t have one. And if you already have one, you can improve it and get the best score. You can get a score of up to 800+ for free, you just have to make 2-4 arrangements.
First of all try to get a credit card, either it is life time free or against FD. Suppose you have more than ₹5000, make an FD of ₹5000 and get a credit card against the same. Nowadays there are many banks which give credit cards against FD.
HDFC Bank, SBI Bank, ICICI Bank are doing this work with major banks, and it is possible that even without FD, you can get a lifetime free credit card, like Amazon Pay Credit Card, such credit cards which you get lifetime free .Even without FD. Try to book it, try to apply for it, and hopefully if you get it, then start spending on it. And your credit score will start building .
Another way is that you can check your score by going to cibil score or Transunion credit website. You can download the app name onescore. In this app, you can check what your credit score is . And in that you can also check which loan is currently running in your name, which you are not aware of. It is possible that there may be some other discrepancy which you are not aware of.
So you simply report it from the same app and it will be removed. And your credit score will improve over time. And this last technique is a little advanced. But it works a lot. Try to order stuff on No Cost EMI.
If you use a debit card or have a credit card then you can do no cost EMI transactions through it. So through no cost EMI transactions, the bank will give you loan free of cost and your credit limit will increase .That amount is not fully charged but still the bank thinks that you have taken the loan and you get it for free, there is no interest charge. So this is very very beneficial for you.
If you book no cost EMI on your card, keep checking your credit score from time to time, keep utilising the credit on time, keep paying the bills on time, keep your credit utilisation score below 30-40%.
If you have one or two credit cards and both have a limit of ₹50,000, then do not make a transaction of ₹40,000 on any one card. Even if you invest ₹20,000 each on both cards, your credit utilization will never exceed 20%.
