ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The CIBIL score (a 3-digit number) gives a summary of the credit history from several details on the Credit Report such as ‘Enquiries’ and ‘Accounts’. The CIBIL score ranges between 300 and 900. The higher the CIBIL score, the easier it is to get a loan or a credit card approved.

Detailed explanation-2: -Ans: To increase your CIBIL score from 600 to 750+, you need to build a strong credit history, manage loan payments efficiently, not close your old credit accounts, pay EMIs on time and monitor your credit report. If you have a good CIBIL score like 750 or above, getting a loan would be a breeze.

Detailed explanation-3: -It generally takes a few months to improve your CIBIL score. To move the digits closer to 900, make sure to pay your bills on time and in full, keep credit utilization low, maintain the right mix of secured and unsecured loans and avoid making too many credit inquiries in a short span of time.

Detailed explanation-4: -One of the best things you can do to improve your credit score is to pay your debts on time and in full whenever possible. Payment history makes up a significant chunk of your credit score, so it’s important to avoid late payments.

Detailed explanation-5: -There is no mystery to it: a personal loan affects your credit score much like any other form of credit. Make on-time payments and you could build up your credit history. On the other hand, any late payments could damage your score if they’re reported to the credit reference agencies.