⁠⁠⁠ Crucial Steps to Shield Your CIBIL Score in Times of Financial Crises

7

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Financial crises can put a strain on your credit score, so taking steps to protect it is important, Here's a breakdown of the 7 crucial steps you might be reading about.

1

Minimum Payments

Even during tough times, try your best to make at least the minimum payments on your debts.

2

Communicate Lenders

If you're facing difficulty making payments, reach out to your lenders and explain your situation.

3

Limit New Credit

Applying for new loans or credit cards can negatively impact your credit score, Avoid taking on additional debt during a financial crisis.

4

Monitor Credit Report

Fixing mistakes can improve your score. In India, you can get your CIBIL report for free from CIBIL.

5

Prioritize Debt Repayment

Focus on paying off high-interest debts first, as they can accrue charges quickly and worsen your financial situation.

6

Credit Utilization Ratio

Aim to keep it below 30% for a healthy credit score, this ratio refers to the amount of credit you're using compared to your total limit.

7

Emergency Fund

Having some savings set aside can  act as a buffer during emergencies and prevent you from relying on credit cards to cover unexpected expenses.