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A Good CIBIL Score Can Get You Low Personal Loan Interest Rates? Here's How

How CIBIL score impact your Personal Loan interest rate?

What Is A Score?
 
(Credit Information Bureau India Limited) is India’s first credit information company, which collects financial data and maintains credit records. They collect the data with the help of partners such as banks, lenders and other financial institutions. The information collected includes aspects like total borrowings and repayment history in relation to things like loans and credit cards to determine a person’s creditworthiness and evaluate them for future credit requests. This is then finally denoted by a score, normally ranging between 300 and 900, which essentially summarises your credit history. In this way plays a major role in India’s financial ecosystem providing banks information on all potential lenders as well as helping individuals get fair terms for any borrowing applications.

5 reasons to have good cibil score












Why Is It So Important for Banks And Lenders?

It is typically the first thing your bank or lender will check when you make a loan application as it’s a one-stop summary of your credit history in terms of previous borrowings and repayment history. It helps assess whether you meet their criteria of being worthy enough to lend to. If you have a poor credit history, then the chances are that you will have issues borrowing funds, or else will only be allowed to do so at a much higher rate interest, which is how the bank hedges their risk of lending to a relatively more ‘risky’ borrower.
 
Given that score includes your entire credit history, it is an invaluable tool to lenders as it indicates your behaviour as a borrower. Thus it is often the single most important deciding factor for lenders, helping them make their approval decision. 
 
Wondering what are the elements that define your score? Here are the factors that can increase or decrease your credit score:
 
Repayment history
Late payments or defaulting on payment for credit cards, loans or EMIs regularly can negatively impact your credit score

Your credit limit
Increasing the limit of your credit card can negatively affect your score since it increases the repayment burden and vice versa
 
Unsecured loans
Unsecured loans like personal loans and credit cards can affect your credit score
 
Number of loans and credit cards
If you have multiple loans, credit cards or new accounts, it can impact your credit score
 
What Affects My Score?
 
Typically, things that affect scores include timeliness of repayments for EMIs and loans and credit cards with overdue payments negatively impacting your score. Similarly, if you have had borrowings in the past and have repaid them without issue or delay, then this will reflect favourably in your score. This is why many people are advised to get a credit card even if they don’t need excess funds, as using it responsibly builds up a positive credit history. This is because many a time people are rejected for loans not because they have a poor credit history, but instead because they have no credit history whatsoever, meaning the bank has no information on the kind of borrower you are. This can be held against you. You may choose to borrow a small loan in order to improve your credit score. 
 
Having said that, be sure to do this within reason as having too many loans or credit cards can actually reflect negatively on your score. So try to pay off all your loans and debt on time as well as minimise all borrowings where possible so you look like a more attractive, safe borrower to any bank or lender.
 
In the end, remember that scores are essential metrics in the financial domain and are in every way a make or break factor in most borrowings. Be sure to find out what your present score is and then work towards improving it where possible. 


Have A Bad Credit Score?
 
Do you have a bad credit score but you need a loan? Here are a few tips to help you get a loan despite a bad credit score:

have-a-bad-credit-score

 










































Need Instant Funds?
 
Are you looking for some instant funds for a medical emergency, higher education, a wedding, or to travel abroad? Apply for a personal loan at low rates of interest from Bajaj Finserv. 

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A Good CIBIL Score Can Get You Low Personal Loan Interest Rates? Here's How

How CIBIL score impact your Personal Loan interest rate?

How CIBIL score impact your Personal Loan interest rate?
What Is A Score?
 
(Credit Information Bureau India Limited) is India’s first credit information company, which collects financial data and maintains credit records. They collect the data with the help of partners such as banks, lenders and other financial institutions. The information collected includes aspects like total borrowings and repayment history in relation to things like loans and credit cards to determine a person’s creditworthiness and evaluate them for future credit requests. This is then finally denoted by a score, normally ranging between 300 and 900, which essentially summarises your credit history. In this way plays a major role in India’s financial ecosystem providing banks information on all potential lenders as well as helping individuals get fair terms for any borrowing applications.

5 reasons to have good cibil score












Why Is It So Important for Banks And Lenders?

It is typically the first thing your bank or lender will check when you make a loan application as it’s a one-stop summary of your credit history in terms of previous borrowings and repayment history. It helps assess whether you meet their criteria of being worthy enough to lend to. If you have a poor credit history, then the chances are that you will have issues borrowing funds, or else will only be allowed to do so at a much higher rate interest, which is how the bank hedges their risk of lending to a relatively more ‘risky’ borrower.
 
Given that score includes your entire credit history, it is an invaluable tool to lenders as it indicates your behaviour as a borrower. Thus it is often the single most important deciding factor for lenders, helping them make their approval decision. 
 
Wondering what are the elements that define your score? Here are the factors that can increase or decrease your credit score:
 
Repayment history
Late payments or defaulting on payment for credit cards, loans or EMIs regularly can negatively impact your credit score

Your credit limit
Increasing the limit of your credit card can negatively affect your score since it increases the repayment burden and vice versa
 
Unsecured loans
Unsecured loans like personal loans and credit cards can affect your credit score
 
Number of loans and credit cards
If you have multiple loans, credit cards or new accounts, it can impact your credit score
 
What Affects My Score?
 
Typically, things that affect scores include timeliness of repayments for EMIs and loans and credit cards with overdue payments negatively impacting your score. Similarly, if you have had borrowings in the past and have repaid them without issue or delay, then this will reflect favourably in your score. This is why many people are advised to get a credit card even if they don’t need excess funds, as using it responsibly builds up a positive credit history. This is because many a time people are rejected for loans not because they have a poor credit history, but instead because they have no credit history whatsoever, meaning the bank has no information on the kind of borrower you are. This can be held against you. You may choose to borrow a small loan in order to improve your credit score. 
 
Having said that, be sure to do this within reason as having too many loans or credit cards can actually reflect negatively on your score. So try to pay off all your loans and debt on time as well as minimise all borrowings where possible so you look like a more attractive, safe borrower to any bank or lender.
 
In the end, remember that scores are essential metrics in the financial domain and are in every way a make or break factor in most borrowings. Be sure to find out what your present score is and then work towards improving it where possible. 


Have A Bad Credit Score?
 
Do you have a bad credit score but you need a loan? Here are a few tips to help you get a loan despite a bad credit score:

have-a-bad-credit-score

 










































Need Instant Funds?
 
Are you looking for some instant funds for a medical emergency, higher education, a wedding, or to travel abroad? Apply for a personal loan at low rates of interest from Bajaj Finserv. 

image
Business Standard
177 22

A Good CIBIL Score Can Get You Low Personal Loan Interest Rates? Here's How

How CIBIL score impact your Personal Loan interest rate?

What Is A Score?
 
(Credit Information Bureau India Limited) is India’s first credit information company, which collects financial data and maintains credit records. They collect the data with the help of partners such as banks, lenders and other financial institutions. The information collected includes aspects like total borrowings and repayment history in relation to things like loans and credit cards to determine a person’s creditworthiness and evaluate them for future credit requests. This is then finally denoted by a score, normally ranging between 300 and 900, which essentially summarises your credit history. In this way plays a major role in India’s financial ecosystem providing banks information on all potential lenders as well as helping individuals get fair terms for any borrowing applications.

5 reasons to have good cibil score












Why Is It So Important for Banks And Lenders?

It is typically the first thing your bank or lender will check when you make a loan application as it’s a one-stop summary of your credit history in terms of previous borrowings and repayment history. It helps assess whether you meet their criteria of being worthy enough to lend to. If you have a poor credit history, then the chances are that you will have issues borrowing funds, or else will only be allowed to do so at a much higher rate interest, which is how the bank hedges their risk of lending to a relatively more ‘risky’ borrower.
 
Given that score includes your entire credit history, it is an invaluable tool to lenders as it indicates your behaviour as a borrower. Thus it is often the single most important deciding factor for lenders, helping them make their approval decision. 
 
Wondering what are the elements that define your score? Here are the factors that can increase or decrease your credit score:
 
Repayment history
Late payments or defaulting on payment for credit cards, loans or EMIs regularly can negatively impact your credit score

Your credit limit
Increasing the limit of your credit card can negatively affect your score since it increases the repayment burden and vice versa
 
Unsecured loans
Unsecured loans like personal loans and credit cards can affect your credit score
 
Number of loans and credit cards
If you have multiple loans, credit cards or new accounts, it can impact your credit score
 
What Affects My Score?
 
Typically, things that affect scores include timeliness of repayments for EMIs and loans and credit cards with overdue payments negatively impacting your score. Similarly, if you have had borrowings in the past and have repaid them without issue or delay, then this will reflect favourably in your score. This is why many people are advised to get a credit card even if they don’t need excess funds, as using it responsibly builds up a positive credit history. This is because many a time people are rejected for loans not because they have a poor credit history, but instead because they have no credit history whatsoever, meaning the bank has no information on the kind of borrower you are. This can be held against you. You may choose to borrow a small loan in order to improve your credit score. 
 
Having said that, be sure to do this within reason as having too many loans or credit cards can actually reflect negatively on your score. So try to pay off all your loans and debt on time as well as minimise all borrowings where possible so you look like a more attractive, safe borrower to any bank or lender.
 
In the end, remember that scores are essential metrics in the financial domain and are in every way a make or break factor in most borrowings. Be sure to find out what your present score is and then work towards improving it where possible. 


Have A Bad Credit Score?
 
Do you have a bad credit score but you need a loan? Here are a few tips to help you get a loan despite a bad credit score:

have-a-bad-credit-score

 










































Need Instant Funds?
 
Are you looking for some instant funds for a medical emergency, higher education, a wedding, or to travel abroad? Apply for a personal loan at low rates of interest from Bajaj Finserv. 

image
Business Standard
177 22