The CIBIL score essentially helps lenders decide whether or not you should be given a loan. Your CIBIL score depends on factors such as your previous credit behaviour, loan repayment history, debt-to-income ratio, the nature of your existing loans (secured or unsecured), and credit cards you have used in the past, among others. Continue reading to learn more about the factors that affect your CIBIL score on Bajaj Markets.
We will now take a look at the various other factors that affect your CIBIL score.
A good CIBIL or credit score improves your loan eligibility chances. An exceptional score suggests that you are a responsible borrower who is disciplined with his/her finances. Lenders prefer individuals who handle their debt well and inturn present them with the best offerings on credit cards and loans.
The most notable benefit of having a high CIBIL score is that lenders offer you the best rate of interest on your loans. Having a good score also gives you an upper hand when negotiating the rate of interest levied on credit products.
A good CIBIL score will help you get the best credit cards with the most lucrative benefits. Lenders are likely to offer you high-value credit cards to choose from when your score is above 700.
Irrespective of whether you plan to apply for a credit card or loan at present, you must continue to maintain a good CIBIL score. A high score will be an asset in the future whenever you plan to apply for a home loan, personal loan, or even a credit card. Always prioritize good credit history.
The four major factors that affect the CIBIL score include a negative repayment history, high credit utilization, multiple hard inquiries, and high credit balance.
The CIBIL score is an important aspect of your financial health and directly impacts your loan application process. When you apply for a loan, the lender runs a check of your CIBIL report and score. It essentially works as a first impression for the lender, and the decision to lend is primarily based on this score. The lender will decide to review your application only if your CIBIL score is accepatble as it is the benchmark of your financial well-being.
No, CIBIL cannot alter your records. The CIBIL report is a compilation of records that are provided by banks and other financial institutions.
An NA score could mean that you do not have a credit history or have several credit cards with no credit exposure.