How to Get a Good CIBIL Score at a Young Age?

Here is a list of steps that can be taken for getting a good CIBIL score at a young age:

1. Understand the basics of a credit score

   A credit i.e. a CIBIL score is an indicator of your financial responsibility and is measured by a lot of factors. Your payment history, debt usage, credit age (how longer have you been establishing your credit), account mix (how many accounts or lines of credit do you have) and inquiries (how often do you apply for new credit) all these are factors that make up the credit health and CIBIL score is an indicator of that.
   

2. Open a savings account

   In the digital world of today, a savings account is very important for maintaining good credit health. If you are under the age of 18, ask your parents to set up a savings account for you.

3. Apply for a credit card if you havent done so

   Again, take the help of your parents in applying for  a credit card if you are under the age of 18. However, remember that your parents are the co-signers on your account and as such, they are responsible for your spending. Therefore, spend responsibly and carefully.

4. Know about monthly payments

   This is very important. In fact, responsible expenditure is the key of maintaining financial health. Avoid overspending on the credit limit and avoid late payments at all costs. Late payment on the credit card leads to payment of a monthly minimum, which further impacts the credit score in a negative way.

5. Make a good credit checklist

   Making a checklist of your financial goals and another checklist for the steps being taken by you always helps. Simultaneously, you can make a credit health check list and make a note of factors that contribute towards it.

6. Keep an eye on your CIBIL score

   Even if you havent applied for any loan, keeping a track of your CIBIL score is important. This will ensure that you are responsibly making a note of the future loan eligibility.

HDFC Life has introduced the CIBIL score calculator feature that is a sure shot help in getting to know your CIBIL score within minutes.