What is the impact of CIBIL Score on loans?

Loans are given on the basis of the income but it is also dependent on your CIBIL or credit score. Even though people who do not have any credit history also get loan, having a good score fetches lower rate and faster approval. For personal loan the score required is different from home loans since both are altogether different type loans.

Below is the score required for each of the most popular loans – home loans and personal loans. Later, you will find out the steps involved in the

What is the best CIBIL score to get a home loan?

A home loan depends on the property type/location/value, income of the borrower and CIBIL score. Home loan rates and approval is related to your credit history and applicants having CIBIL score of 650 or above can get a lower rate of interest and smoother approval.

What should be the minimum CIBIL score to get personal loan?

If you have a good credit score, you would be eligible for a lower rate of interest. 750 or above is considered to be a suitable CIBIL score to get a personal loan. The rate of interest also varies depending on the income.

How can you check CIBIL score?

You can follow the below steps in order to check your score online:

  1. Go to check CIBIL score check website
  2. Provide your full name as mentioned on the PAN card
  3. Enter your Date of Birth
  4. Choose the gender you belong to
  5. Mention your PAN card number
  6. Enter your contact address
  7. Provide the email ID fn which you want to get the credit report
  8. Enter your mobile number
  9. Submit the form

On the successful submission of the CIBIL score form, you will get a confirmation on your email ID. You will get the detailed credit report on the email ID you have provided.  

Should you check credit score frequently?

Checking this score is important but if you do not quite often, it might affect or in fact reduce it as well. So, it is better if you keep a track of it on a regular interval of 6 months (suggested).

How to improve CIBIL Score?

Here are some of the best options in front of you to improve or generate a good CIBIL or credit score.

  • Avoid unnecessary usage of credit cards.
  • Try not to use more than 50% of your credit card limit.
  • Increase your limit in case you are sure of using it in a disciplined manner.
  • Pay your loan EMIs or the credit card bill on time.

Having got the idea of the importance of CIBIL score for loans, you must have understood why is it said to avoid late payments. If you are doing anything that is affecting your score in a bad way, you should take it seriously and stop doing such things. It will not only help you get more options in terms of lenders but also get a lower rate on the loan.

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