Today in the banking world, this CIBIL score is one of the vital tools for evaluating your financial credit worthiness. This score which is on a scale of 300-900 is one of the factors that banks consider when determining whether to extend credit or loan to a borrower. A high score makes it easier to get a loan while a low score and make it difficult to get a loan.
What Is The Best CIBIL Score to Get a Loan
Banks have mentioned that the best CIBIL score they consider ideal should be 750 or above. Those people who score 800 and above are allowed special considerations especially when seeking a loan. This means that, when selecting and applying for a loan, the higher score will not only facilitate loan approval but also a better interest rate that is charged, as well as a longer period within which to make repayments.
Credit Score Cibil Requirement For Different Type Of Loan
Each type of lending requires a certain range in the CIBIL score. Customers with scores of 750 and above are preferred for personal loans, while those with scores of 700 and above are okay for business loans. Not only approval is dependent on this score but the loan amount and the repayment conditions are also better if CIBIL score is higher.
How to Increase Your CIBIL Score
To increase your CIBIL score, all that is required is some effort that is crucial to do the following. Another depending factor involves repaying the EMI timely and being responsible while using credit cards. Ideal percentage one should spend on a credit card is not more than 30 percent of the card limit. Also, CIBIL score check on a frequent basis and not closing old bank accounts will further also give you a better score.
How to Fix a Low CIBIL Score
Still, one can raise the CIBIL score if it is low. One must begin with all the bills and EMIs being paid on time. One should use credit cards responsibly and ensure that all financial expenditure are incorrigible. Check your credit report often and make sure that you report to your bank if there is any irregularity that you find.
For a common man today, a good CIBIL score has become one of the most important aspects of financial freedom. It therefore is useful to check periodically and increase the index to open up new financial prospects ahead of you. A good CIBIL score even enables loans to be sanctioned and it actually tells a lot about your credentials as a consumer.
