- Most of the loan settlement happens in the case of credit cards
- Credit card interest is high and for a short period of time
Getting a loan is very difficult for some and it is very easy for some. This is because it depends on your earnings and its savings. The bank or the lending company first sees your earnings and then the savings and then the number of CIBIL scores comes.
Credit card cases have higher settlement
In fact, most loan settlements happen in the case of credit cards. Credit card loans are expensive and have a short tenure. In most the cases, the customers do not repay the credit card loan. They make the settlement. But on settlement, the bank spoils your score.
What happens if the settlement happens
The bank does a settlement once to withdraw your money, but it sends your action to CIBIL. That is, you filled the money and your score also got spoiled. Therefore, instead of settlement, if you want, you can close prematurely by waiving interest and charges with the bank.
Settlement happens in case of non-receipt of money
The bank makes settlement only when it feels that the money is not going to be received. In such a situation, he settles with the customer, but the exact amount remaining will continue to show in your account. If you think after 4 years that I will take loan and at that time the score in CIBIL shows bad then it will become more difficult for you. Because then if you go to withdraw your name from CIBIL, the bank will ask you to pay interest and charges for four years. In such a situation, it can be a difficult task for you.
what is cibil score
Actually it works as a scale for giving loan to anyone. All the banks or NBFCs in the country follow this. It depends on the factors related to your credit score. Under this, if you are making regular loan payments, then your score will be good. If you don’t do it regularly then your score gets spoiled.
What difference does it make if the score is good or bad?
If the score is good then you will get loan easily as well as concession in interest rates will also be available. There are many banks in the country that have directly linked the loan with the CIBIL score. That is, the loan will get the same score. If the score is bad then there may be problems in getting the loan.
How to make CIBIL Score
It is prepared by banks on the basis of your loan payment. After this the banks send it to CIBIL. According to the rules of the Reserve Bank, banks have to do this.