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CIBIL score is a number that is denoted by three digits and that represents a borrower’s creditworthiness. You can check CIBIL score free online and can also access your credit report to look for any errors that can lower your score and your chances of getting loan approvals. There are various factors that contribute to building up your CIBIL score. Some of these factors include your repaying habits, credit utilisation ratio, past dues, current loans (if any), and numerous other factors.
Baca Juga:
In India, TransUnion CIBIL or Credit Information Bureau (India) Limited is the most trusted credit bureau that holds the most weightage and generates CIBIL score. When you check CIBIL score free, you will get a three-digit number that will range between 300 to 900. CIBIL score is considered as good as higher or closer it is to 900 and as bad as closer it is to 300. Banks Consider the CIBIL score as a measurement of your creditworthiness and approve or reject your credit applications on the basis of your CIBIL score.
Importance Of CIBIL Score
Now that you know what CIBIL score is and that you can conduct a CIBIL score check free online by PAN Number, let us tell you about the importance of the CIBIL score. Here is a list of some of the most important aspects of your CIBIL score:
Getting Loan Approvals
Your CIBIL score plays an essential role in getting loan approvals. Whenever you apply for a loan, the bank or financial institution will check your CIBIL score to get an idea of your creditworthiness. The CIBIL score is an excellent measure to judge your repaying capacity and it also helps the bank in identifying risky borrowers at the time of loan application.
Having a high CIBIL score will indicate that you have good repaying habits and it will help you to get loan approvals. Similarly, having a low CIBIL score means that you are most likely to default on the loan and banks consider you a risky applicant and you will most likely get your loan application rejected. Therefore, it is important to have a high CIBIL score in order to get loan approvals.
Loan Top-Ups
A high CIBIL score can make it easy to get loan top-up approvals and also would help you in getting higher amounts of loans approved. Having a high CIBIL score would reflect your positive repaying behaviour and credit habits that can enable you to take out large sums of money in the form of a loan. Therefore, the CIBIL score is not only limited to loan approvals. But, it also plays an important role in determining the loan amount.
Credit Card Approvals
There is a certain set of eligibility criteria that you need to fulfil to obtain a credit card in India. CIBIL score is one of the most important features to qualify the credit card eligibility criteria. Credit cards that offer the best benefits have a high set of eligibility criteria that you need to qualify to be able to get approval on your credit card application.
Having a high CIBIL score can help you to get approval on your credit card application. However, GroMo advises you to carry out a CIBIL score check online before applying for a credit card to avoid rejection.
Low Rate of Interest
Whether it is a loan or credit card, you can get lower interest rates on your application if you have a high CIBIL score at the time of applying for the loan or credit card. However, there can be situations when there is not a major difference in the interest rate but applying for long-term loans like home loans with a high CIBIL score can be beneficial.
Having even the slightest difference while applying for a long-term loan can result in a major difference in the total interest payable amount for that loan. Therefore a CIBIL score check is important before applying for a loan to get lower interest rates.
Increased Credit Limit
CIBIL score is a major deciding factor for your credit limit while applying for a credit card. Whenever you apply for a credit card, banks or financial institutions check your CIBIL score to determine your credit limit. Having a high CIBIL score can make you eligible for higher credit limits at the time of application. You can search “My CIBIL score” to be aware of your CIBIL score and credit report before applying for a credit card to get the highest limit possible.
Conclusion
These are some of the important aspects aof the CIBIL score. Moreover, it is important to have a high CIBIL score in order to avail numerous benefits that come along with it. You can download the GroMo mobile app to learn more about how to check CIBIL score free and other important aspects of CIBIL score. Moreover, you can download the GroMo mobile application to make money online with 0 investment. Simply download the GroMo app on your smartphone and register to become a GroMo Partner and sell financial products to potential customers to earn money.
