Given today’s fast-paced lifestyle and ever-increasing trends and expenses, financing one’s requirements, via credit is a viable and smart option. Be it a car or relaxing vacation or even personal expenses like a home down payment, etc. all these financial needs can be enabled with a loan or credit. This can help you reap the benefits and enjoy now and repay later at ease.
Whether you're applying for a loan, your credit score plays a key
role in determining your reliability in terms of repayment. In India,
the Credit Information Bureau (India) Limited, the acronym for CIBIL,
is the leading credit information company that maintains an
individual’s credit records and provides credit scores to individuals.
The score ranges between 300 and 900, with higher scores indicating
better creditworthiness.
Read on to know more about what is a
good CIBIL score in
India? And how it affects one’s ability to borrow?
What is a CIBIL Score?
A CIBIL score or a credit score is a three-digit numerical
representation of a borrower’s creditworthiness. It reflects the
reliability of an individual to repay loans. Where the CIBIL
score range from 300 to 900, and higher scores indicate a better
reliability and credit profile.
The credit score is calculated
based on various factors such as your credit history, repayment
behaviour, credit utilization ratio, credit enquiries, especially the
unsuccessful ones and the length of your credit history. Financiers
and lenders use these scores to evaluate the risk associated with
lending money to an individual who applied for a loan or credit card.
How Much CIBIL Score is Good?
A decent credit score is generally considered to be above 700
points and anything that falls above 750 is a good CIBIL score in
India. Having said this, different lenders usually have varying
criteria for what they consider a good credit score. Generally, a
score above 800 is considered excellent and gives borrowers a much
higher chance of getting loan approvals at favourable terms.
A higher credit score not only improves your chances of getting
approved for loans faster but also helps in negotiating better
interest rates and repayment terms. One must strive to keep their
scores above 700 at all times and take measures to maintain this.
How Much CIBIL Score is Required for a Credit Card?
When evaluating credit card applications, issuers always consider the credit score. It is one of the primary factors influencing one’s credit card approvals. Different lenders might have specific credit score requirements that may vary between issuers: however, a CIBIL score of 750 or above is generally considered good enough to qualify for most credit cards. Mostly, premium credit cards or cards with selected and exclusive benefits might require a higher credit score.
Also Read :- Difference Between CIBIL Score and Equifax
How Much Cibil Score is Required For a Home Loan?
Home Loans are high-value amounts that are borrowed by
individuals and considering the credit score while approving a loan
is a pivotal step. Each lender might have its own specific criteria,
but a CIBIL score of 650 or above is normally considered acceptable
for Home Loan applications. However, to get competitive interest
rates and favourable terms, it is always advisable to have a credit
score of 750 or more.
Poonawalla Fincorp is a trusted name in
the financial sector, and we provide Loans to individuals with good
credit scores. With our simplified application process, competitive
interest rates, and flexible repayment terms, at Poonawalla Fincorp,
you can make owing your dream home come true!
How Much Cibil Score is Required For a Personal Loan?
A Personal Loan is an Unsecured Loan that gives individuals
access to quick funds that can be used to fulfil various purposes.
Personal Loans being unsecured in nature, do not require any
collateral, making lenders heavily rely on credit scores and income
proof when evaluating loan applications. Exact credit score
requirements may vary from lender to lender, however, again a CIBIL
score of 750 or above is considered excellent for hassle-free
Personal Loan approvals. This can also increase your chances of
getting a loan at more competitive interest rates.
Poonawalla
Fincorp offers Personal Loans to help finance all your cash
requirements, be it paying hospital bills or funding your latest
vacation. With our easy application process and competitive interest
rates on loans, you can find assistance to finance all your needs.
Maintaining a Good CIBIL Score:
Now that you know the benefits of having a good credit score, you must work on maintaining one. It is advisable to keep a track of your credit score and improve it if necessary. You can do so by following these simple steps:
- Paying your bills on time: Timely payment of credit card bills and ever missing any EMIs can help you maintain a good score. It is important to loan only what you can easily repay.
- Keep a tab on credit utilization: Credit utilization is the percentage of your available credit limit that you use. It is advisable not to use your entire available credit in one go, this indicates responsible credit management.
Conclusion:
A decent CIBIL score is essential for getting approvals on loans
and credit card enquiries. If you are wondering what is a good CIBIL
score in India you must strive to achieve a score above 750. Mainating
a good credit score is simple, it is important to clear the dues on
time, keep credit usage in check, and regularly monitor your credit
report. By embracing these simple credit management practices, you can
ensure a strong credit score and boost your financial stability.
Poonawalla Fincorp can help you check your credit score and prepare
you to take a leap towards your dream car, home or any other personal
expense. Additionally, we at Poonawalla Fincorp offer loans for all
purposes. With a wide range of loan products available with us, you
can choose any to achieve your goals!
