Your credit score is one of the vital loan eligibility factors. It is one of the aspects your lenders consider while processing a loan application. A good credit score is a guarantee that you may get the loan approval faster and at a lower rate. In turn, it can help you repay lower EMIs and save.
But what is a good CIBIL score accepted by lenders? Go through this quick post and know more!
What is a good credit score?
A good credit score is a CIBIL score between 700 and 900. The higher it is, the better. The maximum CIBIL score that one could have is 900. Having a good credit score will help you get the loan approval faster and at a reasonable rate. You will also end up enjoying a significant loan amount with a longer repayment tenor. What’s more, a large number of lenders will look to approve your request. You have more choice to compare between lenders and pick the best deal matching your needs.
What is a good credit score for applying for loans?
A good CIBIL score for loans also remains the same as that for other purposes. If your credit score is between 700 and 900, you may get the loan approval.
No matter if you apply for a personal loan, home loan or car loan, a score between 700-750 and more is mostly favourable. You can get a good deal on the loan interest rate, longer repayment tenor, bigger loan amount and much more.
How to maintain a good credit score?
Do you want to know how to increase CIBIL score? Maintaining a robust credit score is easy if you can consider a few points:
- Repay your ongoing loan EMIs on time.
- Ensure there are no missed payments or defaults.
- Pay your credit card outstanding on time.
- Lower utilization of your credit card limit.
- Avoid multiple loan applications at a time.
- Maintain a lower debt to income ratio.
- Keep a mix of secured and unsecured loans.
Before applying for a loan, you should check your CIBIL score. If it is not up to the mark, you should improve it and then only apply for a loan.
