How to Improve Your CIBIL Score for Foreign Education Loan
Study Abroad Loan Application Checklist
Your credit score tracks your ‘probability of default’, i.e. how likely you are to pay back a loan based on your financial patterns. This pattern is calculated based on your credit history from different lenders, credit card companies, collectors, etc. If you do not have such a score, your co-applicant’s CIBIL score may be checked by the lender instead. Let us learn about where your CIBIL score falls in the next section.
What Does your CIBIL Score Mean?
When you approach a lender for a foreign education loan, one of the first things they do is check your CIBIL score. This helps them understand your ability to manage debt and keep a consistent financial profile. We will see what each score range means in the table below.
- CIBIL Score Range - 0 , What it Indicates - A CIBIL score of 0 means that you have no credit history or that you are new to the credit system.
- CIBIL Score Range - 300-500 , What it Indicates - This range puts your CIBIL score in the ‘poor’ category, meaning that you need to thoroughly assess your financial records.
- CIBIL Score Range - 550-649 , What it Indicates - This range is ‘average’, which means that your chances of getting the loan approved are quite low but not impossible.
- CIBIL Score Range - 650-749 , What it Indicates - This is considered a ‘good’ range, usually preferred by lenders. It indicates good credit behavior in the past.
- CIBIL Score Range - 750-900 , What it Indicates - This is considered an ‘excellent’ credit range. You can easily obtain a foreign education loan from any lender with such a score.
It is important to note that your CIBIL score changes every 6 months to 1 year. So, depending on the timing of your University applications, your CIBIL score might improve if you just wait and follow some of the tips given in the upcoming section.
7 Tips to Improve your CIBIL Score Before Taking a Foreign Education Loan
- Pay the Bills on Time - Missing an EMI or credit card payment can affect your CIBIL score. To avoid doing that, you can set reminders to pay your bills on time. Many EMIs or bills also let you automate payments, meaning that the amount gets deducted on a set date each month. Being disciplined with your payment reflects well on your credit profile.
- Clear Existing Debt Before Applying for a Foreign Education Loan - Before you apply for a foreign education loan, try to pay off any existing loans. This helps you control your finances more easily, building a solid foundation for your upcoming education loan process. This also helps you save yourself from higher interest charges and stay in good financial condition.
- Use Credit Prudently - Limit your credit card usage to essentials and try not to apply for too many loans at once. Focus on repaying one loan at a time and then applying for another to keep your credit score stable. It is better to be careful with your loan applications as they majorly affect your CIBIL score.
- Keep a Mix of Credit with the Right Foreign Education Loan Type - You are more likely to get a foreign education loan if your CIBIL score shows that you can responsibly manage different credit portfolios. This means having a mixture of secured and unsecured loans in your profile or diversifying your credit across portfolios like credit cards, mortgages, and installments.
- Customize a Credit Limit According to Your Expenses - How much credit you use also impacts your CIBIL score. The less credit you use, the better your CIBIL score will be. So, it is prudent to apply for credit when needed and contact your lender to set a credit limit according to your expenditure.
- Make a Purchase on EMI to Build a Credit History - As we’ve discussed earlier in this article, paying your EMIs on time can help you improve your credit score. This is true for making large purchases with EMIs, as each payment proves your financial reliability and helps you build a favorable credit score over time.
- Keep Track of Your Credit Report - Make a habit of checking your CIBIL score once in six months. Sometimes, your credit report might have clerical or factual errors like incorrect updates on loan payments. These errors may contribute to your credit score appearing lower than it is. Getting those mistakes corrected is crucial to keep your credit score accurate.
To wrap up, proper planning and meticulous habits go a long way in keeping your credit score high. The top overseas education loan consultants also help you with every step of the application process, from evaluating your credit score to comparing foreign education loan interest rates for the best possible scheme. So, reach out to a trusted consultant today to start the process!
About the Creator
Riya Niar
I am dedicated professional counselor at ELAN Overseas Education Loan, specializing in assisting students with obtaining the best study abroad loan options. With a passion for helping students achieve their dreams of studying abroad.
From Job to Prison: Revenge, Sacrifice, and Ending
The story begins by showing a bald and strong man named Bradley, who is a car mechanic by profession. As usual, Bradley reaches the garage with a broken car, but after arriving there, he sees that the garage owner is anxiously waiting only for him, which makes him a little surprised. Then the garage owner calls him into his office. Hearing this, Bradley understands that he is about to be fired from his job, and exactly that happens. The owner tells him that these days the garage is going through a financial crisis, and that is why he is being forced to fire some workers. But this is only an excuse, because Bradley is a hard-tempered man, and the owner wants to remove him and hire someone who flatters him. Now since Bradley is a tough man, he does not argue with the owner. He goes to the locker room, takes out his belongings, takes his car, and silently leaves for home. And yes, friends, this is where the downfall of Bradley’s life begins, which continues straight until the end of the story and ends there. Anyway, Bradley stops his car in front of his house, and at the same time he sees that his wife Lauren is sitting in her car, talking to someone on the phone. Bradley becomes suspicious of her. To know the truth, he keeps watching her carefully for some time. When he becomes sure, he immediately goes to Lauren and tells her to open the car door. His wife says, “You came back from work very early today.” At the same moment, Bradley notices marks of someone else’s lips on her neck and says to Lauren, “Give me your phone.” But Lauren refuses to give the phone, because of which Bradley forcefully snatches the phone from her, and his suspicion turns out to be correct. She is talking on the phone with another man. In anger, Bradley tells Lauren to go inside the house. Lauren says, “At least listen to me.” Bradley says, “I said go inside the house.” Then Lauren silently goes inside the house. Now, he had already been fired from his job a little while ago, and now his wife’s affair, because of which he had become even more disturbed, so he starts taking out all his anger on Lauren’s car. How? You can see that yourself. Yes, he is so angry that he does not even realize that his hands have been badly injured. After that, he calms himself down and goes inside the house and questions Lauren about how many days she has been with the other man. Lauren tells him everything, that for the past three months she had been having an affair with someone else. Actually, Bradley’s wife had an abortion a few days earlier, because of which she used to remain sad, and Bradley often stayed busy with his work. Because of this, Lauren felt lonely and very depressed at home, and to fill this emptiness, she had to take support from another man. Hearing these things, Bradley realizes that he should have given time to Lauren. He apologizes to Lauren for this and says that from today, from right now, they will both start a new life. Lauren agrees. After that, Bradley tells Lauren that he has been fired from his job and now he will work for a man named Gil, who is a drug lord. As soon as she hears Gil’s name, Lauren clearly refuses and says, “You yourself said that you would never work with Gil.” Bradley says, “Yes, but in such circumstances, we cannot live like a prosperous family. To run a family, money is needed, and at this time I have no other option.” He also assures Lauren that he will do this work very carefully.
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