Maximize tax savings
up to ₹46,800 easily
0% commission • Earn upto 1.5% extra returns
A good CIBIL score is a CIBIL score between 700 and 900. A good CIBIL score will be followed by many benefits such as quicker approval, a low-interest rate on the credit facility, higher loan amount, longer repayment period, and more. Furthermore, multiple lenders will be willing to approve your loan so that you can make a choice about the lender you wish to borrow money from.
A good CIBIL score for loans remains the same as that for any other purpose, i.e. any score between 700 and 900. A good score ensures a higher chance of your loan application getting approved. No matter if it is a personal loan, car loan, or home loan you are looking for, a score above 700 is favourable.
You can get a good deal with a lower interest rate, longer repayment period, higher loan amount, and more with a good CIBIL score. In addition, such a score will lead to a quicker and easier documentation process.
When it comes to a home loan, you can expect up to 80% of the total cost of the property if you have a CIBIL score between 700 and 900. However, such standards cannot be set in the case of a personal loan as it is an unsecured loan. The loan amount may vary based on the purpose you quote for the loan and the score. In the case of a car loan, there is no specific score that qualifies you. It is recommended to have a score above 700 to stay confident while applying for a car loan.
Though you are unaware of the effects of your actions, you may still be contributing for your credit score getting reduced. Here is a list of few actions that directly contribute to lowering your credit score:
If you utilise more than 50% of your credit limit on a regular basis, your credit score can be at stake. It shows that you are not good at managing finances and expenditure. To keep up with a good credit score, you must make sure to keep your expenses within 50% of your credit limit.
Multiple applications and enquiries mean you are hungry for credit; it also means you may not be able to repay if a loan is granted.
According to the latest scoring algorithm, the long-term trend of outstanding balances, the ratio of repayment to the outstanding balance, transaction history on credit cards, and the number of accounts opened and closed during the period are a few new factors that are considered to arrive at the CIBIL score.
An aspiring applicant must first get access to their credit report and check if they have a good chance of getting the credit facility. If the score is low, try and improve the score before you apply for credit with a lender. Avoid the above scenarios to keep up your score.