Often people do not pay attention to the CIBIL score, but if the CIBIL score or credit score is low, then there is a problem in getting a credit card and loan. On the other hand, if your CIBIL score is good, then the bank itself will request you to get a credit card. CIBIL score can make many of your tasks easier in the banking system, while a bad CIBIL score can stop many tasks.
First, know what is CIBIL score.
It is a three-digit number or say a score. Its range is from 300 to 900 points. It shows your loan eligibility. This number is decided based on your old loan, credit card bill, etc. If you keep paying all your loans and card bills, then your CIBIL score keeps improving, whereas if you default, then your CIBIL score keeps getting worse.
What is the CIBIL score required to get a credit card?
If your CIBIL score is between 300-500, then it is considered bad. If your score is between 500-650 then it is considered average. If your CIBIL score is between 650-750 then it is considered a good score. If your score is between 750-900, then it is excellent. Anyone whose score is more than 750 does not have any problem getting a loan or getting a credit card. That is, if your CIBIL score is more than 750 then you will get a credit card easily.
What are the benefits of a good CIBIL score?
If your CIBIL score is good then it has many benefits. Every bank checks the CIBIL score of the person before giving a loan. In such a situation, you can get a loan easily and cheaply. You can even get a pre-approved loan offer many times and you can also get the facility of instant loan i.e. money coming into the account in a few minutes.
Disadvantages of having a bad CIBIL score
If the CIBIL score is bad then you also have to bear its disadvantages. You have to face problems in all the bank-related work. Let us know the 5 disadvantages of a bad CIBIL score.
1- There will be problems in getting a loan
If your CIBIL score is bad, then you will have problems getting a loan from any bank, small finance bank, or NBFC. Banks fear that your CIBIL score is bad, that is, you can default.
2- You will have to pay a higher interest rate
Even if some banks agree to give you a loan despite a bad CIBIL score, they will charge a higher interest rate. They try to manage their risk. They think that even if the person defaults on the last few EMIs, the bank should not suffer a loss, so the interest rate is kept high.
3- You may have to pay a higher premium
Many times insurance companies can also ask for a higher premium from you if the CIBIL score is bad. Actually, in such a situation, insurance companies feel that you can make more claims, so they can ask for a higher premium. Many companies may even hesitate to give insurance.
4- Difficulty in taking a home-car loan
Just like personal loans, you may also face problems in taking a home loan or car loan. You may even have to pay more interest. There is also a problem in taking property on lease for business. The company may also ask you to mortgage something in exchange for giving you a loan.
5- There may be a delay in getting a loan
The bank that will agree to give you the loan will also check the documents thoroughly before giving you a loan. Even if you apply for a gold loan or securities loan, there will be a thorough investigation. Even if you mortgage something, the bank will look at you with suspicion and will do a thorough investigation. All this can take a lot of time, due to which you may get delayed in getting a loan.
Due to which mistakes CIBIL gets spoiled?
Cibil Score shows your loan eligibility. Every bank checks the CIBIL score before giving a loan. With this, the bank can understand whether you will be able to repay the loan on time or not. However due to some mistakes, the CIBIL score gets spoiled. Let us know about such 7 factors due to which CIBIL score decreases.
