Check CIBIL Regularly

I was looking for a loan and in that process, the bank done an inquiry to check my CIBIL Score. CIBIL score is actually a 3 digit summary of our Credit History and it tells how trust worthy you are. Meaning if you take a loan how much probability is that you will pay it back. If your CIBIL is low that means the interest rate would be little higher whereas if your CIBIL score is high you might get loan in less interest rate. And that's why having a good CIBIL score is required.

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Now when I was checking my CIBIL score I found out that because of Banks problem, one payment has shown late. And that has made a problem in CIBIL score and thus I lost some points in that. I usually had a CIBIL score above 800 but because of that problem, it had reduced and now I am less than 800. Along with that when you close a personal loan before time, then also it's a problem for your CIBIL score. I am not sure why it's that.

When you close a loan before it's should increase your CIBIL, but here in India it's the opposite. But even after these setbacks my CIBIL is above 780 and that's actually good thing. I will try to get it above 800 once again and see how to increase from there.

Now I have around 7 Credit Card and I pay them well on time and there is no problem from that front. But if it starts giving the problem then I have to cancel them one by one and keep only few of them. I recently closed my oldest credit card, I know I shouldn't have. But the problem is, they have started to charge a lot of money for that card and I have to cancel it. And that might also reduced my CIBIL. Not sure though.

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