A credit or CIBIL score is a numerical summary of your credit profile. Maintaining a good credit score (750+) opens up financial opportunities. It is a prominent tool for lenders when deciding on loan approval.
When you need monetary assistance in emergencies, your high credit score can help you maximise your potential and eligibility for favourable loans. Here are the benefits of a high credit score and how to improve your CIBIL score quickly.
How A High Credit Score Benefits Borrowers
The benefits of a high credit score include:
1. Higher chances of loan approval.
2. Low-interest rates on loan offers.
3. Availability of pre-approved loan offers.
4. A credit score is key in answering - ‘How much loan can I get.’ It can be up to Rs 25 lakhs if you have a high score.
5. Improved negotiating power regarding repayment and other loan terms.
6. Quick consent and approval to your loan application.
Ways to Improve Your Credit Score
1. Review your credit report periodically to ensure that all details are recorded correctly. If errors are found, one should notify them to credit bureaus immediately.
2. Limit your credit utilisation ratio to 30% or low.
3. Consider accepting an increased credit limit on your card or accepting a new credit card with a higher limit to improve your score.
4. Ensure you pay every EMI (equated monthly instalment) or credit card bill on time.
5. Avoid making multiple loan or credit card applications simultaneously.
Thus, customers need to work constantly to maintain an excellent credit score to increase their potential to get approved for a loan. Apply for a personal, business, or mortgage loan with a high credit score and effectively meet your financial needs. To understand, ‘how much a loan I can get, go through the lender’s official website and check your loan eligibility using a loan eligibility calculator.