With a High CIBIL Score Get Easy Loan And Credit Card Approvals

Whenever you are applying for a banking product such as a credit card or a loan, the bank or NBFCs check your credit score. Because the credit score provides an overall report of your account activities. You can easily know your credit score by just login to the CIBIL’s official website. CIBIL is a credit bureau that provides one’s credit score and helps in getting the best or appropriate loan and credit card offers. In this article, you’ll come to know the importance of credit score.

Why the CIBIL Score matters?

Any bank or NBFC when lend a large amount of money to the borrower, they want to make sure that the person is trustworthy and repay the debt. And one’s creditworthiness is determined by the CIBIL report, which mentions the repayment history of the individual. You can also know the CIBIL score easily by following the steps:

1. Visit the CIBIL’s official website and click on the link for a free credit report
2. Create a CIBIL account
3. Fill a form with personal details with CIBIL such as  date of birth, gender, postal address and identity proof number (PAN, Aadhaar, etc.)
4. Accept all the terms and conditions.

Benefits of a high CIBILscore

The credit score of an individual ranges from 300 to 900. If an individual CIBIL score is high then they can get many benefits such as:

• Low-interest rate: You can get a low-interest rate on your loan and credit card bills if you have a high credit score. The bank or NBFC can provide a lower interest rate to the customers whose CIBIL score is above 750. It helps in paying the EMI easily and reduces the loan burden. 
• Easy approval: The bank approves the loan and credit card application of an individual with a high CIBIL score. A good credit report makes you a trustworthy borrower and the bank or any other financial institute does not want to lose an eligible candidate. 
• Negotiating power: If your credit score is high you can negotiate with the lender to lower your loan interest rate. On the other hand, a bad score may lead to a high rate of interest. 
• Higher-limit: The credit card limit depends on the CIBIL score, a good score leads to a high limit. A high limit helps in managing your everyday purchases and saves your money. 
• No security deposits: You do not have to provide any collateral for the personal loan if your credit score is high. Banks can ask for collateral if an individual credit score is not up to the average score of 750. 

How to Maintain a Good CIBIL Score?

• Pay your monthly installments on time to build a good track record of your account. Any due or penalties will decrease your score. 
• Avoid having a credit card that you don’t use for a long time, close the card instantly. Because it can affect your score if the card is not used during the validity period. 
• Maintain your credit card carefully, set bill payment reminders and limit your card usage. Overlimit of the card usage can put you in high debt and you have to pay interest on your over limit usage. 
• Choose longer tenors for your loan and make part-prepayments whenever possible. As longer tenors are easy to manage and the interest rates are also attractive.