7 Benefits of Having a High CIBIL Score for Personal Loan
Having a high credit score is beneficial and works well in your favour when applying for a personal loan. Your creditworthiness determines your eligibility for the loan and the terms offered. The Credit Information Bureau (India) Limited (CIBIL) is the most commonly considered of the four major credit information companies. Your CIBIL score is a three-digit number reflecting your creditworthiness based on your credit history. Lenders consider credit score as one of the primary and most important factors influencing loan applications and associated perks.
Here are seven ways in which a high CIBIL score benefits you when applying for a personal loan:
Easy Loan Approval
A high CIBIL score significantly enhances the chances of your loan approval. This showcases the trustworthy and reliable behaviour of loan borrowers. Lenders perceive people with good credit ratings as reliable borrowers who are more likely to repay their debt diligently and timely.
Lower Interest Rates
A high CIBIL score allows you to negotiate with lenders for better terms and conditions on your personal loan. Lenders are more inclined to offer favourable and lower interest rates to borrowers with high credit scores, resulting in reduced monthly payments and lower interest.
Higher Loan Amount
A high credit score improves your chances of getting a bigger loan amount. Lenders like personal loan apps are more willing to extend substantial loans to people with a proven track record of responsible behaviour, increasing your borrowing capacity.
Flexible Repayment Options
A good credit score can also provide you with more flexibility when it comes to loan repayment. Lenders may offer customised repayment options, such as longer repayment tenures or the ability to choose between fixed and floating interest rates. This allows you to tailor your loan according to your financial circumstances.
Faster Loan Processing
Time is of the essence when you are in need of money during emergency situations. A high CIBIL score expedites the loan processing time. Loan apps prioritise applications from individuals with good credit scores, allowing faster verification and approval processes. This means you can access the money you need in a shorter amount of time.
Enhanced Negotiating Power
A high credit score grants you improved bargaining power when negotiating loan terms. Lenders value borrowers with good credit histories and are often willing to accommodate reasonable requests, such as waiving certain fees or providing additional benefits.
Better Financial Opportunities
In addition to personal loans, having a high CIBIL score provides access to a world of financial alternatives and opportunities. You’ll stand a better chance of getting loans, including credit cards and mortgages. A good CIBIL score also improves your chances of obtaining rental agreements and preferential conditions from various service providers, including landlords, utilities, and loan apps.
Way Forward
You can obtain a personal loan with beneficial terms by maintaining a high credit score. A good credit history increases your likelihood of approval, along with lower interest rates and flexible repayment options. Furthermore, having a high CIBIL score gives you access to a variety of financial options, making it a crucial tool for your financial path.
If you have a zero or low credit score, you can create a credit score by getting a loan from a trusted loan app such as True Balance. True Balance is a popular personal loan app that helps you get the financial aid you need when other conventional lending institutions reject your application. Getting a personal loan will help you maintain and boost your CIBIL score by repaying the loan on time and showcasing responsible behaviour.
So, start building and nurturing your credit score today, and experience the multitude of benefits with the True Balance loan app!
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