There are a lot of factors which influence one's life. A credit score is one of them. In today's world everything is recorded to understand your behavior. For example, you are on a shopping website trying to purchase something and you leave the site without purchasing anything, you get a notification from the website to remind you of your purchase. Same way your financial patterns are also recorded for example; the credit card statement will have all the details of your limit spent in which activities like fuel, grocery, etc.
Same way, a credit score is a record of you financial status looks like. How you have made your payments in the past, are you eligible for a new line of credit etc. A cibil score plays an important role in everyone's life.
A bad credit shows a past failure in making a payment or payments on time which can result into denial of a new loan or a credit card.
There are companies called credit bureaus who collect all your payment related information and store it with them. If you have made a default payment or not made a payment at all, they will record it and it stays with their records for a very long time. If you are applying for a loan, the lender always pulls up your report from the credit bureau and checks if you are eligible for a loan. If you are denied a loan 99% chances are you have a bad credit score.
There are a lot of severe problems which you can face if having a bad cibil score. For instance, the lenders are less likely to accept your application if you have a bad cibil score. There are lenders though, who can provide you a loan with bad cibil score but the interest rate will be much higher as compared to loan market standards. Insurance companies also consider your cibil score while determining insurance premiums, you will be charged a higher premium as compared to others who have a good score.
These days there are landlords who before offering the property to the tenants, check their credit score to understand their payment patterns. Some utility companies go through such background verification and charge you a higher security deposit.
Once you happen to understand that your credit score is bad, you can always start fresh. There are a lot of ways you can rebuild your score in no time, which will then help you towards financial harmony.
Let's sight some quick ways to increase cibil score.
This is one of the fastest ways you can rebuild your credit score in no time. A secured credit card can be availed by any lender by depositing a certain amount of money. The deposited money will act like security with the lender towards your credit card. The secured credit card can be used just like a normal credit card and also all the benefits with it. If in future you fail to make the payment the lender will deduct money from your security deposit. This way your score stays intact and rising.
Apply for a small consumer durable loan which can help you appreciate your score. The benefit of a consumer durable loan is, you can get if from almost any store with easy processing. Some consumer durable loan can be availed within no time.
Make sure to make all your payments on time. Availing a financial product is not a hard job, but to pay off if hardest. If you have availed any financial product, you should try making all the payments on time which will help you get your cibil score rising.
If you are tangled in bad credit score it is really hard to get out of it. If you try with good faith, promising financial integrity to yourself you can achieve a great credit score in no time. Remember, "There is no best way to do things, but to do things for the best."