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What are the Advantages of a Good Credit Score?

· cibil score

A credit score or a CIBIL score is the numerical representation of your financial history or transactional history, that is calculated based on your credit history for the last 36 months. This score acts as an indicator for the lenders to judge your credit standing and your repayment capacity.
So, if you are thinking of applying for a loan or credit card, you need to maintain a good CIBIL score.

Why a good credit score is essential?

1) Displays Credit Worthiness
Lenders will check your CIBIL score to judge your credit standing, when you apply for any loan or credit card. These are unsecured borrowings, so credit score plays a vital role to get your credit history, your repayment tendencies, and your recent borrowing information. It will be better for you if you have never skipped your EMI deadlines. As this will help you to improve your creditworthiness and maintain a good credit score of above 750.

2) Helps to Get Credit

If you need fund in the form of a loan or via a credit card, you can easily get the approval, if you have maintained a good score. Most lenders determine your eligibility for a collateral-free loan on the basis of your credit score and decide whether to offer you a loan or not.

Even the rate of interest of your loan can be lowered with the help of a good credit score.

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