Cibil Scores are basically a rating provided by the credit bureau “CIBIL”. This score indicates the responsiveness of the borrower in paying off his/her debts timely. It is necessary for a borrower to have a cibil score at the time of taking a loan because this score becomes a basis to judge the creditworthiness of the borrower by the lending institutions. To maintain a high cibil score, it is important that the borrower practices the following activities-
- Pay his/her debts timely
- Not to apply for multiple credit cards as paying them would become overwhelming
- Opt for secured loans
- Avoid payment from credit cards as much as possible, especially at the time of payment of loan.
These above points needs to be strictly followed by the borrower as it is very difficult to increase a bad cibil score once it appears.
There is a great article that imparted me the knowledge of cibil score. You can read this and many more articles at http://www.loankuber.com/content/cibil-score/