A high CIBIL score offers 7 key advantages to borrowers
Thirty-five-year-old agriculture scientist Shruti Mishra boasts of a high credit score of 750. When she applied for a car loan two months ago, not only her case was approved in a couple of days but was offered loan at the least possible rate of interest which that bank could offer.
And this was not a one-off case. A few weeks ago, her credit card provider raised her credit limit from ₹5 lakh to ₹7.5 lakh for the same reason: a high credit score.
Anyone who has a high credit score would be able to relate to this. They are entitled to get faster loan approvals, lower rates of interest, even lower premium on their insurance and all in all, relatively better financial deal with the bank – more often than not.
Having a high CIBIL score, by default, offers a number of advantages.
Loan approval: Lenders often prefer borrowers with high credit scores as they indicate a lower risk of default. Thus, having a high CIBIL score increases your chances of getting approved for loans, credit cards, and other forms of credit.
Bargaining power: With a high CIBIL score, you may have more negotiating power when it comes to loan terms, such as interest rates and repayment periods.
Higher credit limits: A high credit score indicates responsible credit behaviour, which may lead to lenders offering you higher credit limits on credit cards as well as loans. This can offer you with more financial flexibility and purchasing power.
Lower interest rates: Borrowers with high credit scores are seen as less risky by lenders, so they usually qualify for lower interest rates on loans as well as credit cards. Over aperiod of time, this can lead to significant savings on interest payments.
Faster approval process: Lenders often streamline the approval
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