Cibil Score: Cibil score will not be corrected for 7 years! Do not make a mistake of more than 30%..

CIBIL Score: Loan rejected? Credit card not being made? The root of all these problems often ends at one place - your Cibil Score. We all try to keep it good by paying EMIs and bills on time, but still, the score suddenly drops. Why?

The reason is a common mistake that 7 out of 10 people make. This mistake is to cross the 'Laxman Rekha' of the 30% limit of your credit card. Today, we will tell you how this small mistake can bring 7 years of 'exile' on your Cibil Score and how you can make a perfect score.

Do you also make this mistake?

The rule is very simple. If the limit of your credit card is ₹ 1 lakh, then you should not spend more than ₹ 30,000 from it under any circumstances. As soon as you cross this 30% limit, you start becoming a 'risky' customer in the eyes of the banks.

Why is spending more than 30% so dangerous?
When you use a large part of your credit limit (like 70-80%), it signals to the credit bureau that you are in financial trouble and are completely dependent on borrowing to meet your needs.

Today's mistake, punishment for 7 years
This is the most shocking thing. Even if you improve all your habits today and start paying on time, any negative record (like late payment or high credit utilization) recorded on your credit report remains for a full 7 years. This means that for 7 years, that mistake will keep affecting your score.

Solution 1: Divide your expenses, be smart
If you have more than one credit card, then divide your big expenses into 2-3 cards. This will ensure that the utilization ratio of any one card will not go above 30% and your score will also be safe.

Solution 2: The Limit will increase, and the tension will reduce
If your income is stable and you have always paid on time, then request that your bank increase the credit limit. By increasing the limit, your 30% limit will also automatically increase, giving you more space to spend.

Solution 3: Proper use of technology
Set your credit card's mobile app or SMS alert in such a way that as soon as your expenditure reaches the 25-30% limit, you immediately get an alert. This will save you from unnecessary expenses.

5 real enemies of CIBIL score
1. Forgetting to pay EMI or bill (late payment) 2. Emptying the credit card limit (high utilization) 3. Running too many cards and loans (multiple credit accounts) 4. Applying for loan in every bank (repeated hard inquiry) 5. Keeping a large amount outstanding on the card (high balance)

How to become a 'topper' of CIBIL?

Building a perfect score is not rocket science. Just adopt these 4 habits- Always pay on time. Never use more than 30% of the credit limit. Keep a good mix of secured (home/car loan) and unsecured (personal/credit card) loans. Check your score yourself every 3 months.

Know your score, that too for free
You can check your score and report for free once a year by visiting the official website of CIBIL (cibil.com). Apart from this, many banks and fintech apps also provide the facility to check the score regularly for free. Remember, checking the score yourself is a 'soft inquiry' and it does not lower your score.

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