There comes a time in everyone’s life when they face an urgent need for credit. This need for credit can be for different purposes and also can be fulfilled by various means such as credit cards, personal loans, home loans, loan against property, and many others. So talking about credit, have you ever think how do you get it and from where would you get it? Let me tell you that you can avail of any kind of credit facility from several banks and financial institutions across India.
But do you know what is that one thing that any lender checks before giving you any kind of credit facility? Well, it’s your CIBIL score, or also known as credit score. Any kind of credit can not be possible without your credit score.
So if you’re someone who is looking to get your hands on credit from any of the lenders in the country and want to know what role does your CIBIL score plays in getting the required credit, then this article would be a perfect read for you. We will be telling you about every aspect of the CIBIL score so that you can get a more firm grip on all of this. Keep reading!
What is CIBIL Score?
CIBIL score is actually a 3-digit mathematical representation of your creditworthiness and your financial behavior. It is totally based on your credit report which would consist of information like financial transactions, bill payment, EMI payments, existing debts, and others. All this information is managed by the credit rating agencies in India, which are total four. Credit Information Bureau of India Limited is the leading and first agency to be established in India. The other three are Equifax, Experian, and CRIF High Mark.
Your CIBIL score ranges from a score of 300 to 900 based on your financial repayment behavior. A score near the digit of 900 is considered to be a good CIBIL score. Basically, a score of 700 or anything above is considered to be a good CIBIL score.
A good score indicates that you are good with all your repayments and thus, lenders are more likely to trust you in comparison to an individual who has not a good score. With a credit score of 700 or above, you are more likely to get any kind of credit approval faster and also could get a lower interest rate than the general individuals.
How can you get your Credit Score in an easy way?
Now, after knowing all the things about the CIBIL score, if you want to question “How can I know my credit score?”, then we want to tell you that you can easily check your credit score by visiting the official website of the CIBIL and by feeding some basic information such as your name, age, mobile number, email id, PAN number, and other things. Your credit report will be sent to your registered email id within a few days. You can check your Credit score in that report.
What are the benefits that you can have having a high credit score?
You can have a look at some of the amazing benefits that you can get by having a high credit score mentioned below.
- When you have a higher credit score, you could get a lower rate of interest as lenders find it less risky to give you the required amount.
- A high credit score means that you have a pretty disciplined behavior and lenders appreciate this pretty much. Hence you get a faster approval while applying for the loan.
- Lenders are more likely to give you a higher loan amount if you have a high credit score.