Good CIBIL Score can Increase Your Loan Approval Prospects
In case you are applying for a loan, the CIBIL score is an important factor that determines whether you are eligible for one. Lenders consider the CIBIL score to determine whether you are creditworthy and can repay the loan.
The CIBIL score ranges from 300 to 900, the highest being 900 and the lowest being 300. Any credit score from 750 to 900 is considered good and the chances of getting a loan approved increase. In case your credit score is high, loans can be availed at low interest rates.
It is vital that you check the credit score on a regular basis. Any rejection in your loan application will further impact the CIBIL score. Therefore, it is important that you check the credit score before applying for a loan. You can visit BankBazaar?s official website to check the CIBIL score.
Good CIBIL Score ? Importance
Some of the main advantages of having a good CIBIL score when you apply for a loan are mentioned below:
- Loan Term is Flexible: With a good credit score, you can request the lender to extend the repayment tenure. This will ensure that your monthly payments reduce. You will not be able to extend the loan tenure with a low credit score.
- Low Interest Rates: Lenders usually offer loans at low interest rates in case your CIBIL score is good. You can also negotiate with lenders in regard to the interest rates. Loans are provided at high interest rates if the credit score is low.
- Quick Loan Approvals: Loans will get approved quickly if your credit score is high. A high CIBIL score shows that you will be able to repay the loan. Several pre-approved loan offers may also be provided in case your credit score is high. No documents will need to be provided if a pre-approved loan offer is availed.
- Approval of Loan Application is Seamless: The process for the loan application to get approved is seamless in case your CIBIL score is high. Minimal documents will also need to be provided.
Ways to Improve the CIBIL Score
The different ways by which you can improve the CIBIL score are mentioned below:
- Avoid Availing Several Loans: Taking several loans may show lenders that you are in debt and you will find it difficult to get a loan.
- Make Payments on Time: Your credit score will fall if payments are not made by the due date. Several financial health checks are conducted by lenders before a loan is provided. Therefore, it is important that all monthly instalments are made on time.
- Increase Credit Limit: The credit utilisation ratio plays a big role in your credit score. The credit utilisation ratio will be lowered if you increase the credit limit. This can help in improving the credit in the long run.
- Choose a Longer Repayment Tenure: In case you are availing a loan, opt for a longer repayment tenure. This will ensure that your monthly payments are low and will reduce the burden.
FAQs on Good CIBIL Score can Increase Your Loan Approval Prospects
- Can I avail a loan in case my credit score is low?
In case your credit score is low, lenders may reject your loan application or offer loans at high interest rates.
- Will multiple loan application rejections impact my credit score?
Yes, multiple loan application rejections will impact your credit score.
- Will the payment history impact my CIBIL score?
Yes, the payment history will impact your CIBIL score.
- Can I view my CIBIL score online?
Yes, you can check the CIBIL score by visiting official website.
- Will a fee be levied to check the CIBIL score?
No, no fee will be levied to check the CIBIL score.
CIBIL Score Requirements for Loans
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