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Keeping yourself updated on your CIBIL score is one thing while you are looking for a new credit line. If your score seems not very satisfactory or incapable of getting you a new credit facility, you can always think of making it better with time. A minimum period of 3-6 months is required to see a change in the score. However, what score is a good one? What can you do to improve it?
A credit score ranges from 300 to 900 where any score around 300 states that you have not managed finances well in the past. Such a score will give a negative impression on you to the lenders saying you have not paid back the loans on time in the past. Lenders may not want to give you a new loan when you have not paid the previous loans properly. On the flip side, a score near 900 states that you can be trusted with money and improves your chances of getting a new credit facility. Lenders will be more than happy to start a new transaction with you. You may also get the best deals in terms of the interest rate. According to the latest algorithm, any score above 650-700 means you can manage money well.
There can be many reasons for you to miss the payments on time, i.e. you could be at a tough phase, forgot the last date of payment, or crossed the credit limit unknowingly. These issues can be resolved and the score can be improved.