How important is Your CIBIL Score?
Your credit score is crucial in your financial journey. Banks rely on CIBIL scores of their customers in approving or rejecting a loan or credit card application. If you have a score above 750 then there are better chances of negotiating interest rates on loans. A CIBIL report gives accurate credit history, and banks consider this report to check on your economical state. Credit score determines your eligibility for borrowing credit.
Where Does your Credit Score Come in Use?
- Loan and Credit Card Approval: Your credit score tells the banks and financial institutes about your creditworthiness. A good CIBIL score will leave no room for hesitancy in getting credit card or loan application approved.
- Housing Loan: CIBIL score is undeniably important when it comes to home loan or loan against property. A good credit score can even help you avail a place on rent without hassles.
- Bargain on Interest Rates: If you are on the higher side of CIBIL score, there are chances you will get loan on a lower interest rate than usual. You can negotiate with bank to lower the interest rate for a loan you need.
- Get High Credit Limit: Banks favour individuals with high credit score for approving higher credit limit. Thus, you can settle for a comfortable spending limit than having to haggle for increasing the same time and again.
How to Repair your Credit Score?
It is understandable that financial journeys could have its ups and downs. If you have defaulted in credit behaviour once, it will surely reflect in CIBIL score report; however it is not the end. You can resume following disciplined economic activities, and your credit score will gradually look up.