Have you been thinking about making your next BIG purchase? Now, you don’t have to save for it to shop items on your cart or wish list. What if, while shopping you could also improve your CIBIL score? Yes, that is 100% true. For those of you who are new to credit, let us go in detail to understand this.
First let us understand 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.
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 Installments). Sounds fun, isn’t it? Let us dive deep to know how.
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 equal installments over time. Even if you are considering a beauty treatment at Kaya clinic or Enrich salon, the treatment cost can be availed at No Cost EMI. And you don’t even need a credit card for it
So the more you avail services or shop on EMI, your credit score will improve every time. However, it needs to be kept in mind is that after availing finance for your shopping needs, the EMI repayments need to be made on time. Missing the payment deadline may result in penalty or bounce charges. Also, untimely payment or deference from payment can adversely affect the 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. So, why not get right to it?!