Benefits of a Positive Credit Profile

A CIBIL score is an essential factor that is assessed by creditors at the time of offering you a loan or a credit card. This is a numerical summary of your credit history and past repayment manners.

What is a CIBIL score?

A CIBIl score is a 3-digit number that lies between 300 to 900. This helps lenders in measuring your ability to repay the amount you have borrowed. A score between 700-900 is considered ideal, the higher the score, the more benefits you will experience. A high score indicates that you have been a trustworthy borrower.

Anyone can survive with a bad credit score, but it is not always simple and cheap. Maintaining a healthy credit score will assist you in saving more money and will make your financial life much simpler. If you are looking for some motivations to build a good CIBIL report, here are some amazing advantages of having a good credit score.

Benefits of a sound credit score

Low-interest loans

Creditors have now started giving loans according to the risk profile of the borrower. The applicant with a high credit score gets loans at much lower interest rates. A slight increase in interest rates can impact your EMIs.?

Better negotiating power with the lender

A good credit score offers you the ability to bargain for a lower interest rate on a credit card or a new loan. This depends from lender to lender. However, if you own a poor credit score, lenders are doubtful to agree on loan terms, and you won't have other credit offers or alternatives.?

Higher Limits on Loans

The higher is the loan amount, the higher will be the risk for the lenders. When a loan with a high amount is applied by the borrower, the lender will first rely on the score. With a decent score, you can get higher limits on loans.

More Credit Card Rewards

Apart from a higher credit limit, a high credit score also uncloses a wider variety of credit cards. Most of the rewards on credit cards require excellent credit for approval. This includes rewards for traveling that can be utilized for your vacations and cash-back rewards.?

Discount on loan processing fees

Financial institutions charge a processing fee on their loan, whether it is a home loan, car loan, or personal loan. With a high credit score, you can avail of a discount on loan processing fees and other charges

In Conclusion

The significance of high CIBIL scores is tremendous. In this article, we have just discussed 5 benefits and but there are a lot more. Having a good credit score makes your life simpler, and provides the key to financial products and services.?