Have you been thinking about making your next BIG purchase? What if we tell you that shopping is the new answer to how to improve your CIBIL score? Yes, that is 100% true. If you are unfamiliar with the concept, let us explain what a CIBIL score is.
The Credit Information Report (CIR) represents the payment history of loans and credit cards borrowed from all banks and financial institutions. Based on this credit history, a ‘Credit Score or CIBIL Score’ is generated which communicates the credit-worthiness of the individual. The CIBIL Score is a 3-digit number ranging from 300-900. The higher the score is, the stronger the credit profile. For a user with no credit history, the default CIBIL score is set as -1.
For more information, read: (link of blog 1)
How to improve your CIBIL score by shopping on EMI?
Coming back to the question as to how shopping can improve your CIBIL score. While there are other ways for credit repair, the most simple & quick way is shopping on EMI (Equated Monthly Instalments).
Financial institutions like Snapmint offer you credit instantly for your diverse shopping needs. And you can pay them later in EMIs in 3, 6 or 9 months as the case may be. The most striking fact is that there are options for 0% interest EMIs as well. Whether you are shopping online through Amazon, Flipkart, Urban Ladder or Myntra, or buying from retail stores of Vijay Sales, Durian, Godrej or Croma- you can shop the products and pay in instalments over time. Even beauty treatments at Kaya clinic or Enrich salon can be availed at no cost EMI. You don’t even need a credit card for it.
As you keep repaying the borrowed amount, the credit information will get updated from your lender's side. Taking the example of Snapmint, it is a RBI licence holder and a registered NBFC. When you pay your due amounts on time, they report it to the Credit Bureau of India impacting your credit score positively. So the more you avail services or shop on EMI, your credit score will improve every time. However, make sure to avail the services of government registered credit systems like Snapmint as it reduces the risk of fraud.
Why do you need a good CIBIL score?
Your credit profile plays a very critical role when you apply for loans of any kind- personal loan, home loan or any other form of credit. It is analogous to your resume while applying for a job. Just like a strong resume ensures better job prospects, a strong credit portfolio will ensure higher chances of loan approvals. So, the road to a good CIBIL score begins with shopping.
Also Read: 10+ quick tips on how to improve your CIBIL score
Improve your credit score by shopping on our website