How Does CIBIL Score Impact Your Borrowing
So when you are planning to take a Personal Loan or a home loan it is advised to get your CIBIL score checked. Your CIBIL score principally highlights your financial picture and helps lending institutes to assess the capability of repayment. A person with good credit score, at times, enjoys the benefit of a cheaper interest rate on Personal Loan. But, if the credit score is less than a minimum benchmark set by the lender, the application is rejected immediately.
Generally, a person with a credit score of 750 and above is considered to be a good borrower. Also, a score below 600 reflects that a person has defaulted on payments in past. However, different lenders have a different definition of good credit score. Hence, it is very important to maintain your CIBIL score for getting any kind of loan.
How to improve your credit score
You can follow few simple steps to improve your credit score.
Repayment of credit card spends
- To improve your score, repay your balances and try to keep them low at all point of time
- Even if you clear the full balance every month but your utilization is higher the credit score might be impacted. Hence, you need to keep the necessary checks and balances on the spends
- Also, some of the lenders assess you through the balance reported to the bureau, so it becomes necessary for you to keep the spending in limit
- Set reminders to pay your credit card bill because even one single default can impact your CIBIL score
- Make necessary arrangements to pay your all you EMIs on time
- Taking loan for a longer period and paying your EMI’s on time has a positive impact on your credit score
- Paying debt on time for a longer duration builds the repayment history stronger and better
- Lenders check your CIBIL score every time you apply for a new loan
- Reducing the frequency of new loan application will help in maintaining the credit score
Healthy mix of credit
- Timely servicing a mix of secured and unsecured loan will help in improving your financial history
- A mix of Personal Loan and mortgage loan is a healthy mix and if it’s paid off timely your credit score recovers and improves considerably
However, you may opt for a personal loan for debt consolidation as the process of getting a personal loan is much easier. To understand the monthly outgo towards your total loan amount you may use debt consolidation calculator offered by Bajaj Finserv. Bajaj Finserv, India’s most diversified financial company, through its lending arm Bajaj Finance disburses the loan within 72 hours based on details filled by the applicant on their website. The company runs a quick background check and if it meets all the criteria’s the loan application is approved instantly.
Bajaj Finserv, in its current scheme, is offering Tanishq vouchers worth Rs.10,000, for a loan amount above 10lakhs. The offer is valid between 17th to 23rd April 2017.
About Bajaj Finance Ltd.
Bajaj Finance Limited, the lending arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 7 million customers across the country. Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Personal Loans, Loan against Property, Small Business Loans, Home Loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle re-financing Loans. Bajaj Finance Limited prides itself for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.
To know more please visit www.bajajfinserv.in/finance