CIBIL Score can make your financial journey more turbulent than you’d like, and how you can get back on course by leveraging the Bajaj Finserv Credit Pass. Before we set sail, let’s recap what we know about this magic three-digit number. Ranging from 300 to 900, your CIBIL Score shows how responsible you are with money.
Lenders refer to this score when assessing whether to approve your credit application and deciding on the terms to offer you. Generally, a score closer to 900 – say 750 or higher – is considered impressive by most lenders and will hold you in good stead when it comes to securing credit on favourable terms of interest. So, what are the 5 ways in which a low CIBIL Score can make your money life tricky? Your CIBIL Score reflects your reputation as a borrower, and a low score indicates a shaky repayment history.
Just like you’d hesitate to lend money to a friend who often forgets to pay you back, lenders might think twice before considering your credit application. If getting a loan is like a game, then a low CIBIL Score is like starting at a disadvantage. Lenders might either reject your application completely, or saddle you with very high interest rates, a very short tenure, or both.
Ultimately, this only increases the risk of bringing your score down further if you’re unable to fulfil these conditions. Apart from offering you high interest rates or short loan terms, lenders might also offset their risk by either offering you a reduced loan amount or imposing terms like asking you to offer collateral or a co-signer. Such terms can prove very challenging.
Read more on livemint.com