If you use a credit card and/or have taken a loan in your name and you pay the minimum amount or the interest repayment after the due date, then your CIBIL Score falls. Consumers who make late payments or default on their EMIs or dues will earn a bad credit and gain a negative impact on their CIBIL Score. Even if you default on your payment or dues once, the effect shall probably affect your CIBIL credit score. If you continue defaulting frequently, your CIBIL credit score shall certainly go down.
If you have applied for multiple loans simultaneously or requisitioned multiple credit cards at the same time, then your CIBIL score stands to be impacted as to any lender such a financial behaviour would look like a cause of concern. Multiple enquiries for credit cards and loans means that your debt burden is going to increase which logically means that your loan/dues repayment capacity has been reduced or is going to be reduced going forward.
* Pulling out one’s credit report
* Avoid applying for fresh credit
* Pay in full and on time, each month
* Keep a Check on your Credit Report
* Maintain a healthy Mix of credit
* Maintain card utilization ratio