Things you didn't know about your CIBIL score

In my experience, I have deciphered that the term credit has a rather negative connotation especially for Indians. Having said that, millions of Indians survive and get by on credit. Loans and credit cards are forms of credit that we incur on a monthly basis. While everyone knows about CIBIL, here are a few things many didn’t know about the score:

1. It's not just for loans: Your CIBIL score can affect your ability to get a job or even rent an apartment in some cases.
2. Credit Utilization matters: Just because you have a high limit doesn't mean you should use it. Keeping utilization below 30% is ideal.
3. Multiple inquiries can hurt: Every time you apply for credit, it's a 'hard inquiry'. Too many in a short time can lower your score.
4. Old accounts are good: The age of your credit history matters. Keeping old accounts active shows stability.

How to improve your score?

• Pay all your bills on time, every time.
• Keep your credit utilization low.
• Don't close old credit card accounts.
• Monitor your credit report for errors.

Conclusion

Knowing your CIBIL score and how it works is the first step toward financial freedom. It is a powerful tool that, when used responsibly, can open many doors.