What if your CIBIL score is high? Why the CIBIL score is so important? If you are looking for answers to these questions, we’ve got the answers ready for you. A credit score is a 3-digit score given by any of the credit bureaus - CIBIL, Experian, Equifax or CRIF High Mark, based on your past and present credit behaviour. This can be anywhere between 300 and 900, with higher numbers indicating responsible credit behaviour trends. With a good credit score, loan approval becomes faster.
A personal loan is one of the most common borrowing options for people who are looking for fast access to cash for several personal reasons. However, because this loan is collateral-free, lenders must verify the credibility of the applicant. In this regard, one of the first things to be considered by potential lenders is the credit score of the loan applicant.
All lenders check the CIBIL score of the borrower before approving your loan application. Thus, a high CIBIL score is essential to get loan/credit card approval. But there are many more benefits associated with a higher credit score.
Your credit score is represented in a three digit-figure that ranges between 300 and 900. It is used by lenders to evaluate your creditworthiness and loan repayment capacity. A credit score between 750 and 900 is considered good in India. Having a good CIBIL score increases your chances of availing of credit cards and loans. 750-900 is a good credit score range.
A higher CIBIL score makes you appear a responsible borrower among lenders and reflects a solid payback track record. A lower credit score might impact your loan approval as the lenders might be apprehensive about your loan repayment capacity. A good CIBIL score in India indicates that you have been a good and responsible borrower.
Although credit score is not the only factor to determine an individual's eligibility for getting a personal loan, home loan or credit card, it is one of the first factors considered by lenders while reviewing loan applications. A lack of credit history or a low credit score raises concerns about an individual's ability to repay because the lender may not assess the risk or consider the applicant a high-risk borrower.
750-900 is considered a good credit score range in India. Having knowledge about the CIBIL score range will help you maintain your credit score effectively. CIBIL score ranges between 300 and 900. To maintain a good credit score in India, making timely payments and avoiding default at all costs is important. This will not only improve your chances of availing of loans in India but will also position you as a responsible borrower if you want to apply for loans in the future. The table below mentions what is a good CIBIL score range in India.
If you have a good CIBIL score, then you can get a credit card with a higher limit. However, make sure that you do not overuse your credit card and that you make your credit card payments on time. If you do not comply, your credit score may suffer in the long run.
If you have a good credit score, you will be eligible for additional bonuses and incentives on your credit card in addition to a higher credit limit.
Your credit score is one of the most important factors when applying for a loan. After knowing what is a good credit score, it is imperative to maintain it consistently. Below are some factors that affect your CIBIL score.
You must build and maintain a high credit score over time. A high credit score will ensure that you get access to credit at a low-interest rate, and get pre-approved loans offers and other beneficial terms from lenders.
750-900 is considered a good credit score range in India. Having a high CIBIL score greatly improves your chances of availing of loans.
Yes. A credit score above 600 is considered satisfactory. Further, if you have a credit score of 750 or above, it is considered excellent.
If you want to improve your CIBIl score, ensure that you make timely EMI payments, do not apply for multiple loans at once, and rectify errors in your credit report if any. This will help you increase your credit score.
Various factors affect your CIBIL score, such as delayed EMI payments, too many loan applications, failed payments, improper credit mix, and outstanding debt.
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