Credit Score: CIBIL score is the most important for taking a loan. In simple words, you will not get a loan without a CIBIL score. Actually, through a CIBIL score, the bank gets an idea of ​​your financial condition and the bank gives you a loan only if the CIBIL score is good. Or let's say that if you have to apply for a loan, then your credit score determines whether you get a loan or not.

That is why it becomes necessary to maintain the CIBIL score. CIBIL score does not only help you in getting a loan. If your score is good then you can get a loan at a lower interest rate. Today in this news, we will understand what should be the CIBIL score to take a loan. And when does the bank refuse to give a loan?

How good is a CIBIL score -

CIBIL score (cibil score kya hai) is a three-digit number that is between 300 to 900 and the higher it is, the more the person is sure of getting a loan. If a customer's CIBIL score is between 300 and 550, then it falls in the bad category. Along with this, if the CIBIL score of a person (CIBIL score Updates) is between 550 and 650, it is considered average and if the CIBIL score is between 650 and 750, it is considered good and if the CIBIL score is between 750 and 900, then it is considered very good.

This much CIBIL score is necessary to get a loan-

The CIBIL score reveals the transaction history of a person. According to sources, if the CIBIL score (best cibil score) is between 750 and 900, then this CIBIL score falls in the good category, and with this CIBIL score, the bank offers you a loan with the best interest rate without any delay.

Along with this, if the CIBIL score is between 650 to 750, then also the bank can give you a loan immediately (minimum CIBIL score for loan) and if the CIBIL score is between 550 to 650, then it will be considered average. In this CIBIL score, the bank can give you a loan or can also refuse to give a loan. Whether to give a loan or not depends entirely on the bank.

Disadvantages of low CIBIL score-

If the CIBIL score is bad, then the person has to face difficulties in getting a loan. Whether you should get a loan or not depends on your credit score. If the CIBIL score (best CIBIL score) is low, then there is a high possibility of the loan being rejected.

A bad CIBIL score also affects the loan amount. That is, even if the loan is approved with a bad CIBIL score, you may not get as much approval (bank loan approval) amount from the bank as you need. On the other hand, in case of a poor CIBIL score, you get a loan at higher interest rates, because in a way, banks take risks by giving loans to the customers due to poor CIBIL score.

How is the CIBIL score formed -

You must be thinking about who issues the CIBIL score (how to correct CIBIL score), then let us tell you that credit information companies like TransUnion CIBIL, Equifax, Experian, and CRIF Highmark issue the CIBIL score. These companies collect financial records of people and these companies have the license to maintain the records of people and generate credit reports/credit scores based on this data.

You can improve your CIBIL score in these ways -

A person can improve the CIBIL score in many ways. The first way is that the person pays the loan on time. Whatever loan a person takes (importance of CIBIL score). Like- take home loans, auto loans, personal loans, and using credit cards, then maintain balance in all these. If a person uses a credit card (Cibil Score Kaise Sudhare) then pay their bills on time. Apart from this, keep the credit utilization ratio low and do not take loans on credit card. Check your credit score from time to time so that if there is any default, it can be corrected.

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