If you want to take a loan and approach a bank for the same, they will ask you your CIBIL score. This CIBIL score is available to banks through your PAN. A good score for a person is considered to be a CIBIL score of 750. Anything below it is considered low. If it is near 900, it is considered excellent. India’s First Free Online Financial Advisory, Moneymindz
Your credit score shows how promptly you repay your EMI’s and loans. Your credit score also shows if you pay your loans on time. Delaying the payment or skipping of EMIs is negative. Your total debt as a percentage of your income plays a dominant role too. This, however, doesn’t mean to say that zero debt means high creditworthiness. Get Personal Loan Advice from Kuber Mindz or Give A Miss Call On 022 6211 6588
With zero credit history, you diminish your chances of being offered a loan by most lenders. Ironic, but that’s how it works. India’s First Free On call Financial Advisory, Moneymindz
So, why should you maintain a good credit rating?
1. Easier to avail loans
2. Easier to get credit cards
With a score above 750, it’s easier to get another credit card. Your credit score is what credit card issuers’ check. Smart Financial Advisor, Kuber Mindz
3. Concessional rate of interest
Did you know that you can bargain for a concessional rate of interest if you have a good score? If your default risk is low, banks will make special efforts to preserve you as their customer.
4. Higher credit limit
Your credit limit is a function of your known sources of income. If your credit score is above 750, banks will extend higher limits to you. Get Advice On Credit Cards from Kuber Mindz or Give A Miss Call On 022 6211 6588
5. Premium credit cards
Having a high credit score will bring you premium cards! You cask your card to be updated if you have a good credit score.
6. Express loan approval
A good credit score will ensure your bank gives you a quick loan approval. Your application won’t have that waiting period.
7. Special structure
If you want special structures which are flexible, your credit score is beneficial. With a high credit score, banks will structure deals precisely for you.
8. Interest moratorium
Many banks offer interest moratorium. Here also, a good credit score will be of great help.
9. Longer loan tenure
A good credit score will make it easy for you to ask for a longer loan tenure. Car loans, for instance, have a tenure of 5 years. But with a good credit score, you can bargain for a 7-year tenure.
10. Extra value to visa applications
A good credit history adds value to your visa applications. With a good credit score, your bank will send a favorable letter.
These are some benefits of having a good credit score. Kuber Mindz Pragmatic Financial Advisor.
For more information visit www.moneymindz.com or give a missed call to 022-62116588