If your CIBIL score is 700 or more, then it becomes easier for you to get a loan and credit card. Good score not only reduces interest rate but also strengthens your financial credit. Banks and NBFCs consider you reliable customers and are ready to give better deals. In the long run, this score increases both your savings and opportunity. Let’s know 5 benefits from good credit score.
Better financial credit
The good CIBIL score is not limited to loans and credit cards, but it also strengthens your financial credit. Banks and financial institutions consider you responsible and trusted customers. The advantage of this is that you can get better conditions on the loan.
Many times employers, business partners or landlords also see your credibility. Constant good score shows your ability to be stable and responsible and opens new opportunities for you.
Low interest rate on loan
The biggest advantage of being good score (700 or above) is that you get a low interest rate on the loan. Banks and NBFCs compete with each other to attract good customers and you get a direct benefit.
Low interest rate means low EMI, overall low payment and saving up to millions of rupees in long periods. With this, you can improve your financial planning and keep the burden of loan light.
Small loans easily approve
When your CIBIL score is above 700, banks and loan companies are confident that you are customers paying on time. In such a situation, small loans such as personal loans, car loans or housing loans are approved quickly.
You do not have to face repeated rejections or long processes. Good score makes the whole process easier. Many times banks themselves offer loans on easy terms.
More credit limit
A good credit score can increase the credit card limit for you. Banks give more limit to customers who have a good record of borrowing and repaying.
The advantage of having more limit is that you can spend more and at the same time your credit utilization ratio also remains good. This helps to improve the score further.
Pre-impregnated offers
A score above 700 can give you pre-upward offers, whether it is a loan or credit card. Documentation is less on such offers and money is received quickly, many times in a few hours only.
This emergency is very useful during the needs. Apart from this, such offers are often found on low processing fees and special discounts.
Also read: Personal Loan: If these 8 mistakes are made, you will not get personal loan, bank will reject your application immediately