As an NRI, your CIBIL score is very important. Your CIBIL score is used to assess your creditworthiness when applying for a loan or credit card. A good CIBIL score will pave the way for you to get credit on more favourable terms such as lower interest rates. As a result, you can save a lot of money over time. It's common for homeowners and property management companies to check your CIBIL score when you apply to rent an apartment or a house. It's also common for employers to investigate an applicant's credit history when applying for jobs that involve financial responsibilities. Let's take a look at how NRIs can build and manage their credit scores from home.

How to get a loan for NRIs?

Building credit as an NRI can be challenging, especially if you have limited financial activities in India. Let's look at some of the ways you can take to establish a credit history:

Open an NRE or NRO account.

Consider opening an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account with an Indian bank. These accounts will act as a starting point for your financial activities in India.

How to apply for an NRI Credit Card:

Some Indian banks offer credit cards exclusively for NRIs. These cards are designed for NRIs. It's generally easier to qualify for these because they are often cards with lower credit limits.

Take a fixed deposit (FD) loan:

If you have a fixed deposit (FD) in an Indian bank, you may be eligible for an FD loan. This type of loan will also help you build credit.

Maintain a local address.

Even if it's your family's home, make sure you maintain a local address in India. Having a permanent address is beneficial to your creditworthiness.

How to manage CIBIL score for NRIs

Raising your credit score is only the first step. It is also important to act responsibly. Let's take a look at how to manage your CIBIL score as an expat.

Check Regularly Be sure to check your credit report regularly to keep your credit score up-to-date. You can apply for a copy of your credit report from CIBIL or other credit bureaus in India.

Pay your bills on time: It is crucial to pay your bills such as credit card bills, loan EMIs, and utility bills on time. Late payments can have a negative impact on your credit score.

Use credit wisely Avoid using your credit cards as much as possible. Because high usage can lower your score, try to keep your credit utilisation (credit card balances divided by credit limits) below 30%.

Avoid multiple credit applications: Every time you apply for credit, there will be a "hard inquiry" on your credit report. Too many enquiries in a short period of time will lower your score. Apply for credit only if necessary.

Retain old accounts The length of your credit history is important. Don't close old credit card accounts because they make a positive contribution to your credit history.

Monitor your credit report Review your credit report regularly to see if there are any errors or inconsistencies.

How to check your CIBIL score

As an NRI, it is important to check your CIBIL score to monitor your credit score. Here's how you can access your CIBIL score:

Online Credit Bureau: You can request your credit score and report by visiting the official websites of credit bureaus such as CIBIL, Equifax, or Experian. Some websites may charge a fee for this service.

Credit Monitoring Services: Credit monitoring services like CreditMantri and Paisabazaar allow you to check your CIBIL score and report for free. These services also provide additional features such as credit alerts and personalised recommendations.

Banks and Financial Institutions Some Indian banks and financial institutions allow you to check your CIBIL score for free if you have an NRE or NRO account. Contact your bank to see if this service is available.

As an NRI, it is important to maintain a good CIBIL score. Moreover, it is something that can be achieved with the right strategies and responsible financial management. By building credit, making timely payments, and monitoring your credit report, you can be sure that your credit score is rising, no matter where you live.