<\/p>\n\n\n\n
Surviving with a bad credit score is possible, but not easy and definitely not cheap. Since this number defines your creditworthiness, a healthy score is vital to get a lower interest rate on a loan. So, if you’re thinking of opting for any kind of loan, we recommend checking this score before applying.<\/p>\n\n\n\n
Individual credit rating awarded by CIBIL runs on a scale between 300 and 900 points. The higher you score on this scale, the better.<\/p>\n\n\n\n
While this is a standard measure, these ranges are not set in stone. If your score is below 580, it doesn’t mean you cannot apply and get approved for a loan. You most certainly can, but you may have to pay a slightly higher rate of interest.<\/p>\n\n\n\n
You can check your credit rating or score by logging on to the official CIBIL website. However, don\u2019t check it more than once or twice, as multiple inquiries can negatively affect it.<\/p>\n\n\n\n
A high credit or CIBIL rating shows a potential lender that you\u2019re capable of repaying your loan on time. This way, you become a desirable loan candidate, and a lender would extend finance at best possible interest rate.<\/p>\n\n\n\n
And, the lower your interest rate, the cheaper your loan. Since you’ll be paying an affordable interest rate, you’ll also get rid of the loan faster.<\/p>\n\n\n\n
Additional Read \u2013 <\/strong>How Often Should you Check Credit Score<\/a><\/p>\n\n\n\n As a rule of thumb, a healthy CIBIL score<\/a> improves your chances for approval of new credit or loan. In other words, with a high credit rating, you can apply for any type of finance with confidence. This is especially helpful when applying for a personal loan.<\/p>\n\n\n\n How much loan amount you can borrow depends on your income and credit rating. Naturally, when your score is high, lenders are willing to give you a higher amount. However, this doesn’t mean you won’t get approved for a higher loan amount if you have an average credit rating. But you will probably have to pay a higher interest rate. <\/p>\n\n\n\n Running a CIBIL score check before applying for your desired credit card \u2013 one with a high limit, international lounge access, etc. is a great idea. Needless to say, the higher your credit rating, the better your chances for receiving a worthy credit card with a low-interest penalty.<\/p>\n\n\n\n Additional Read \u2013 <\/strong>All You Need to Know About CIBIL Score<\/a><\/p>\n\n\n\n2. Improve your chances of loan approval<\/strong><\/h3>\n\n\n\n
3. Get higher loan limits<\/strong><\/h3>\n\n\n\n
4. Get desired credit card(s)<\/strong><\/h3>\n\n\n\n
The bottom line<\/strong><\/h3>\n\n\n\n