Here’s how you can improve your credit score

When applying for a personal loan, the importance of having a strong credit score is extremely crucial. If you have a good credit score, according to Credit Information Bureau (India) Limited (CIBIL), your chances of acquiring a loan or credit card also rise.

Money9 Helpline hosted Abhinav Kaul, senior director – strategic partnerships of Bank Bazaar to resolve queries on how to maintain a good credit score.

Biswarup Saha, Kolkata: Currently, I am debt-free, but 4 years ago, I had to restructure a personal loan. Is it going to reflect in my CIBIL score and hamper my chances of getting a loan?

Kaul: You basically restructure your loan when at that particular time you are unable to pay off your loan. So you approach your bank to maybe adjust EMIs or rates so that you can lessen your burden. This restructuring will most probably be reported. You should first download your credit score and check if the restructuring is reflected in the score.

Sharmishtha Ghosal, Kolkata: I have never taken any loan from any organization. I have been working for the past 15 years. Ideally, what should be my CIBIL score under these conditions?

Kaul: If you have never availed of a loan in your life then your score will be zero. The ‘zero’ indicates that this person has not taken any loan. If the loan is taken in recent times up till 6 months then the core will be negative. A proper score will be designated post this.