CIBIL Score Tips: Those with good CIBIL score get 5 big benefits, every bank customer should know..
A credit score is important for everyone. It also has many advantages and disadvantages. A credit score is very important to find out the credit history of a person. If your credit is bad then it can bring many problems for you. At the same time, there are many benefits of good credit or CIBIL score. That's why you should try to maintain your credit score. If your credit score is good then the lender is confident that his money will not be lost. In such a situation, you also get a loan easily. Let us know why it is important to maintain a credit score and what are its advantages and disadvantages.
To take a loan, the CIBIL score should be -
CIBIL score provides information about past loans. Therefore, to get a loan and credit card from the bank, it is necessary to have a good CIBIL score. Regular loan repayment keeps your credit score good. CIBIL score ranges between 300 to 900 points. If the score is 750 points or above then it is easier to get a loan. The better the CIBIL score, the easier it is to get a loan. CIBIL score is prepared on the basis of 24 months credit history.
Why is a credit score important?
Credit history is known from CIBIL score.
Banks look at the CIBIL score of the loan applicant.
The loan behavior of the applicant is checked.
Credit score contains a blueprint for payment of existing loans and bills.
The credit score range is between 300 to 900.
If the score is 700 or more, banks consider it good.
What are the benefits of a good credit score?
Easy to get a loan: If your credit score is good then it is easy to get a loan. For this, you do not need to make much fuss. With the help of a credit score, you get a loan without any guarantor.
Loans can be available at affordable interest rates – Along with easy access to loans, you also have the possibility of getting a loan at low-interest rates.
You can get a loan for long tenure – If you are taking a loan of a higher amount then it can be possible for you to get a loan for a long term if you have a good credit score.
Loan Request Approval-If you maintain your credit score, your loan request can get approved quickly if you need it.
Discount in loan processing fees and other charges – With the help of a good credit score, your loan processing fees and other charges can also be reduced.
How does credit score deteriorate?
On not paying the loan on time
On taking a loan more than the credit limit
On loan default
On settlement of the loan
On becoming a guarantor
What if I have a low CIBIL score?
If the CIBIL score is low then there will be a problem. If you have applied for a personal or business loan, then you will face difficulty in getting the loan from the bank. Loan approval/rejection depends on credit score. If the score is low, the chances of the loan being rejected are higher. The low score also affects the loan amount.
How can a bad CIBIL score be improved?
Do not take more or bigger loans than necessary.
Pay EMI on time.
Pay credit card bill.
Keep credit utilization ratio low.
Avoid taking loans on credit cards.
Don't close your old credit card.
The payment history of old credit cards will be useful.
Apply for a loan only after checking eligibility.
Check credit score periodically.
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