If manners maketh a man, good habits are not far behind. All of us are creatures of habit — following our daily routines and schedules with admirable precision. And it is these very habits that have the potential to shape us into the best version of ourselves. Early in our lives, our parents urged us towards good habits that would shape different aspects of our lives such as our social skills, interpersonal relationships or financial habits.
Here’s how your good financial habits can go on to help you in the credit landscape today.
Once you start off on your credit journey by availing a card or a loan, a credit footprint is created. This footprint is instrumental in building your credit profile and CIBIL Score. Now, your CIBIL Score is a 3-digit numeric summary of your credit report, ranging from 300 to 900. In short, it is a reflection of your credit behavior (and habits) over time. It then follows that good credit habits will lead to a positive credit profile and a high CIBIL Score, while bad credit habits will lead to an unfavorable credit profile and low CIBIL Score. And this is what determines your access to credit in the future.
Lenders will check your CIBIL Score to understand your credit profile, behavior patterns and repayment habits before they approve your loan or credit card application. This is why it is important for you to showcase and leverage good credit habits. Uncertain about where to begin?
Here are a few key credit habits you should keep in mind when building and maintaining a positive credit profile:
Remember that you may not be able to develop all these overnight. Slowly, but surely work towards good credit habits and a positive credit profile and you may notice how this brings about a positive impact on other aspects of your life too.
>> Know your CIBIL Score and Report and stay credit-conscious. Check now.
>> Have a low score? Keep calm and work towards a higher one. Here’s how.
Disclaimer: The information posted on this blog (Information) is prepared by TransUnion CIBIL Limited (TU CIBIL). This Information is for generic informational purposes only and is meant for consumer education and awareness about credit scores, credit history and credit reporting. The Information posted on the blog does not constitute credit advice and the user will need to consider the same and take independent informed decisions . No part of this Information may be quoted out of context, distorted ,distributed, published and/ or reproduced in any form and manner whatsoever. Consumers are advised that the Credit Information Reports (CIRs) prepared by TU CIBIL are based on collation of information, substantially, provided by credit institutions who are members with TU CIBIL. TU CIBIL is not responsible and /or liable for errors and/or omissions caused by inaccurate or inadequate information submitted to it by credit institutions. TU CIBIL does not guarantee the adequacy or completeness of the Information and/or its suitability for any specific purpose nor is TU CIBIL responsible for any access or reliance on the Information. TU CIBIL expressly disclaims all such liability. Further, this Information is based on the data available with TU CIBIL at the time of publication and therefore may not be up-to-date.