Credit Bureaus (CIBIL) collect repayment track record and credit usage data for users from various financial institutions. This creates a comprehensive picture about a user's financial health and user's credit score. This in turn is used by other financial institutes to decide whether to give credit to the user.
Slice sends users repayment and credit usage data to Credit bureaus.
Following are ways how slice can help you in improving your credit score:
- Timely repayments - slice reports the repayment details of users. Payments made on time have a high positive effect towards improving a user's credit score.
- Credit utilization - Credit utilization means how much of your credit limit you are regularly using. This is the ratio of credit used to credit limit available to users. Typically, having a medium credit utilization (generally <80%) has a positive impact on a user’s credit score.
- Delinquency account - When a user is late or has defaulted on repayment this information is also shared by slice to credit bureaus. Unfortunately, this leads to a negative impact on your credit score hence users must try to repay on time.
In summary, regularly using your slice account and regular timely repayments are the best way to boost your credit score! A higher credit score not only helps you in getting cheaper loans, faster approval and higher limit. While a lower cibil score results in delayed approvals, high rate of interest and even rejection of loans.