A credit score plays a critical role in a loan if you are purchasing a car, bike, house, education purpose, etc. it doesn’t matter for the lender. Yes they will provide you different schemes but your credit is one of the factors which needs to be fulfilled. Take personal loans, car loans, bike loans, etc. these loans need a credit score which is the representation of your capability and accountability. And also the clear indication that the borrower is a reliable customer who can enjoy the service and its benefits.
CIBIL score
A customer’s credit score counts on the basis of CIBIL (Credit Information Bureau India Limited) score where all credit and liability are recorded and as per that that scores were given to him by the bank which ranges from 300 to 900.
Importance of CIBIL score
It will help in lower the interest rate
The best benefit of having enough CIBIL score is you can have the luxury of a low home loan interest rate. This will help you pay a lower amount of EMI.
Faster approval of the loan
The best benefit of having a good CIBIL score is a borrower has no defaults so the verification and other things will not take much time and his application for a home loan may get approved soon.
Less other charges
Like during prepayments and foreclosure you may receive less amount on the charges which at the end will work as profit for you.
How to increase the CIBIL score
Regular with credit card payment
If you are regular with your credit card payments and paying the debts on time then it will count in your credit score.
No defaults
If you are maintaining a good reputation with the bank where you are paying all due payments on regular intervals then you will not count as a defaulter.
Paying small loan
If you choose to apply for a vehicle loan then it will be a great opportunity for you to increase your credit score by paying small debts easily then this will help in availing a home loan. In Indiabulls Home Loan having demands on the basis of CIBIL score because the customer is keen to maintain a credit score. A loan is always based on the CIBIL score because it represents your relation with the bank and how much you are supporting him but it doesn’t mean you are allowed to ignore things to avail a home loan. It is one of the factors which you need to fulfill after that you need to have enough income sources to qualify for the home loan approval
Your age plays a big factor even if you have a good CIBIL score and you are applying for a loan at an old age then the bank may reject your application because this is a big amount of loan that needs to be paid on long tenure.
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