Why CIBIL Score Is Important
Credit Information Bureau of India Limited or CIBIL is India’s first credit bureau that assembles details of a borrower’s credit history to formulate the credit score. Other Financial Institute and Bank rely on the CIBIL score which is known as CIBIL TransUnion score to appraise the credit worth and repayment ability of the individuals. We must know that Why CIBIL Score Is Important deeply prior to go for checking it. CIBIL Score provides Ability to get a line of credit easily, Quick approval for mortgages, Low interest rate credit cards, No security deposit on cell phones, More negotiating power, Get approved for higher limits, Easy approval for rented/leased houses and apartments, Low interest rate home loans and car loans and others.
Credit Score important for getting my loan sanctioned, credit, interest rate etc. CIBIL scores can affect your financial journey depending on how good or bad it is. A good CIBIL score will help you get the best interest rates and terms. CIBIL Score can help you to take loan for house or other purposes for instance i.e. “consider two people, P and Q, P has a CIBIL score of 650 and Q has a CIBIL score of 750. They both take a home loan of Rs.4 lakhs for 6 years. P will end up paying Rs.7 lakhs more in interest than Q. This is because Q will get better interest rates than P since Q has a good CIBIL score”. For more details concerning Benefits & Advantages Of Good CIBIL Score, you have to go through this page.
Why CIBIL Score Is Important?
While the approval of loan and credit card or credit, CIBIL Scores plays important role. CIBIL Score or Credit Score is verified by the bank through CIBIL which assist them to determine your creditworthiness which in turn will help you avail loans faster and easier. To acquire the details of other “Importance Of CIBIL Score”, move your cursor downwards!!
- CREDIT Score or CIBIL Score is like First Impression for the lender, the higher the score, the better is your chances of the loan being reviewed and approved.
- Bank and Financial Institutions can check borrower’s Credit Eligibility through credit or CIBIL score for the approval of loan or credit card.
- The lenders will Not Consider or Reject an Application if the CIBIL score doesn’t meet their expectations or if it’s too low.
- Lenders will Consider the Application and Move On To Evaluate Other Factors before approving the application, if the credit score is high.
- The decision to lend is Solely Dependent on the Lender and CIBIL does not in any manner decide if the loan/credit card should be sanctioned or not.
Do you know? What Is A Good CIBIL Score?
Benefits of Good CIBIL Score
CIBIL scores can affect your financial journey depending on how good or bad it is. With the help of below mentioned benefits of good CIBIL Score, you acknowledge the detailed information related to Why CIBIL Score Is Important, so have a look!!
Approval of credit by bank or financial institution is mostly based on the CIBIL score. This score help the lender to know that you are reliable or not. A bad CIBIL score will lessen your chances of getting credit without any hassles. A good CIBIL score is a must to avail a credit card, home loan, mortgage loan, personal loan, car loan or any other types of loan.
A Good CIBIL Score can assist you to get best interest rates and terms. Higher the credit score, better the interest rate. A good CIBIL score will help you save money also.
#3.Approval For Housing
Your housing loan or rent can easily approve with the help of good credit score. Your credit score will act as a deciding factor here and hence, its important to have a good credit score.
CIBIL scores are affected in case of getting favourable loans and good interest rates but it will also help in getting approved for a new cell phone plan or help you get lesser insurance premiums.
Look Out: How To Check CIBIL Score Using Pan Card
Advantages of Good CIBIL Score
At the above area, we learn Why CIBIL Score Is Important? But don’t you want to know about the advantages of the good CIBIL score or credit score. With the intention of assisting you, we are providing some advantages which can help you to understand more about the CIBIL Score, so let’s have a look!!
Faster Loan Sanctioning
- CIBIL Score is like a first impression on lender about the borrower’s creditworthiness.
- Loan Approval Process is being verified by the lender through credit score of the borrower.
- At the time of submission or screening of the loan application, your loan will be approved on the basis of your credit eligibility.
- After the acquirement of the Good CIBIL Score, lender can look at other factors such as your repayment capabilities.
Lower Interest Rates
- You can obtain conciliation power with the help of good CIBIL score.
- With the help of higher CIBIL score, you can achieve more negotiation power in your hand.
- In case of certain loans like personal loans and car loans, interest rates vary in a range that time higher CIBIL score can help you to deal for a lower interest rate with your lender.
- In other case, borrower’s having low CIBIL score won’t have any negotiation power and you will have to pay higher interest rate to compensate for the low credit score.
- A good CIBIL score can even get your prepayment charges and processing fee relinquished off.
Check Here: Factors That Can Affect Your CIBIL Score
In receipt of Credit Card
- Bank issue your credit card after checking the credit score or CIBIL Score.
- A credit score which is derived from the credit history shows you past payment track record to the issuer.
- In fact, at time first time borrowers, who haven’t availed any kind of, credit in the past and hence doesn’t have any credit score find it difficult to get credit card.
Hope you are satisfied with this page of Why CIBIL Score Is Important? And now you are familiar with the Benefits & Advantages Of Good CIBIL Score also. If you want to acquire more details in this concern or any other, be in touch with our portal or can directly go through the Official Website also.