New Delhi: Many public and private sectors banks After the Reserve Bank of India (RBI) last month increased India’s repo rate by 40 basis points, it has increased the interest rates of its home and auto loans from June 1. When the repo rate is high, the cost of funds for banks is high, resulting in higher interest rates for home, car and personal loans. But did you know that if your credit score is high, you can avail the lowest interest rate possible with banks.
Your sybil The score tells the bank how well you can manage your credit as well as your ability to take loans and repay them.
How and what affects one’s credit score?
Credit score is a 3-digit number which determines the ability to repay credit on time, in other words it is the proof of one’s creditworthiness. “While a credit score is given out of 900, any score above 750 is considered a healthy score. A score lower than 720 is considered an ow score and can limit your ability to obtain credit. Any There is not a single attribute that decides how good or bad one’s score is, but a list of factors that cumulatively affect an individual’s credit score,” said Anurag Sinha, cofounder and CEO, OneScore and OneCard, Consumer Credit A veteran in space.
These include: past credit repayments, credit utilization, number of hard inquiries, credit mix, any settled loans that still appear to be active, despite being paid, irregular address details between multiple accounts, one-time Credit repayment history, a low number of loans taken, a healthy mix of different credit products, and checking one’s credit card bills.
Hence, the CIBIL score is calculated by the TransUnion CIBL credit bureaus after considering your past payments, credit history, current and old credit accounts, etc.
Benefits of High CIBIL Score
A high CIBIL score will put you in a position to negotiate with lenders to get a lower interest rate on the loan. There are many lenders who offer preferential pricing on loan interest rates to people with high credit scores.
According to BankBazaar, the interest rate on home loan or car loan varies from bank to bank, however, if you have a high CIBIL score, you can get a discount on the interest rate. If your CIBIL score is 750 or above, banks will provide you with a competitive interest rate loan.
Banks charge cheaper interest rates for consumers with high CIBIL scores and higher interest rates for those with low or poor CIBIL scores. Hence, it is important to build a good credit profile and monitor your CIBIL score from time to time.
For example, State Bank of India provides interest rates based on CIBIL score. Regular State Bank Of India The home loan interest rate for a credit score above or equal to 800 is 7.05 per cent. The interest rate is 7.35 percent for credit scores 650-699 and 7.55 percent for credit scores 550-649. The interest rate with NTC/without CIBIL score is 7.25 percent.
Housing Development Finance Corp has also increased its retail prime lending rate (RPLR) by 5 basis points (bps), the third increase in a month. The latest increase means that the minimum rate for a borrower with a credit score of over 780 is now 7.05%. Borrowers with a credit score of less than 780 will have to pay a minimum of 7.15% for loans up to Rs 30 lakh and 7.40% for loans between Rs 30 lakh and Rs 75 lakh.
“A good credit score helps you get the best loan and credit card offers based on your eligibility. Every lender you apply for a loan or credit card will examine it and based on your credit score your Your credit score is contained in your credit report, which contains a summary of your past history, which will show whether you have paid off your loans in full and on time. enjoy benefits, and low interest rate is one of them. Almost all lenders consider it. Credit score of 750 and above as ideal. They offer low interest rates to applicants with high credit score Because such borrowers take less risk and are less likely to default on payments. With a higher credit score, you can negotiate for lower interest rates and request for waiving off some additional charges,” said Adil Shetty, CEO , Bankbazaar.com said.
More importantly, banks check your CIBIL score to analyze whether you have ever made a lapse in your financial journey, as recorded in your CIBIL report. So, if you have a good CIBIL score, the lender will not hesitate before granting the loan. But a poor CIBIL score can lead to loan rejections as the lender is uncertain about your creditworthiness.
A good CIBIL score will also ensure that you get a housing loan without any hassle and the same applies for renting a space.
A good or high CIBIL score will also ensure that you get approval for a higher limit from the bank.
How can you improve your credit score?
“Paying EMIs on time, paying more than the minimum dues on credit card bills can help you improve your credit score,” said Sinha of OneScore.
You should only use 15-30% of your credit card limit. Using your credit limit to the fullest shows that you are credit hungry and not able to handle your finances.
Another trick, according to BankBazaar, is to request your bank to increase the credit limit on your credit card. Once the credit limit is increased, you should keep credit utilization low. This will suggest that you are not credit hungry and are able to handle credit.
A long credit history will help you improve your CIBIL score. So, if you have old credit cards with good credit history, it is better not to close them. When you close your credit cards, you lose good credit history and this can affect your CIBIL score.
Correct errors in your CIBIL report (if any): If you have noticed a sudden drop in your CIBIL score, you must check your credit report as it may contain errors.
Sinha said, “Regular monitoring of credit scores, avoiding sharing of personal details on online platforms, unverified apps and reporting any errors promptly can help safeguard your credit health against identity fraud. ”
How to improve credit score and its long term impact on score?
When someone finds an error on their credit report, the first step is to file an online complaint with the credit bureaus to dispute the error. Once the form is submitted, the credit bureau contacts the bank to verify the errors as it cannot resolve the errors on its own.
After confirmation from the bank, the bureau and the bank come up with a formal resolution of the discrepancy within 45 days of the complaint. The user is then informed about the error in the revised score. If discrepancies are not identified on time, it can lead to degradation of credit score and users will have to go for a safer product to improve their credit score. It will take its due time,” Sinha explained.
How you can check your CIBIL Score:
Official CIBIL website https://www.cibil.com. go to
Select ‘Get Your CIBIL Score’
Click “Click Here” to get your FREE Annual CIBIL Score
Enter your name, email id and password. Attach an ID proof (Passport Number, PAN Card, Aadhaar or Voter ID). Then enter your pin code, date of birth and also your phone number
Click ‘Accept and Continue’
You will receive an OTP on your mobile number. Type OTP and select ‘Continue’
Select ‘Go to Dashboard’ and check your credit score
You will be redirected to the website myscore.cibil.com
Click on ‘Member Login’ to view your CIBIL Score.
Your sybil The score tells the bank how well you can manage your credit as well as your ability to take loans and repay them.
How and what affects one’s credit score?
Credit score is a 3-digit number which determines the ability to repay credit on time, in other words it is the proof of one’s creditworthiness. “While a credit score is given out of 900, any score above 750 is considered a healthy score. A score lower than 720 is considered an ow score and can limit your ability to obtain credit. Any There is not a single attribute that decides how good or bad one’s score is, but a list of factors that cumulatively affect an individual’s credit score,” said Anurag Sinha, cofounder and CEO, OneScore and OneCard, Consumer Credit A veteran in space.
These include: past credit repayments, credit utilization, number of hard inquiries, credit mix, any settled loans that still appear to be active, despite being paid, irregular address details between multiple accounts, one-time Credit repayment history, a low number of loans taken, a healthy mix of different credit products, and checking one’s credit card bills.
Hence, the CIBIL score is calculated by the TransUnion CIBL credit bureaus after considering your past payments, credit history, current and old credit accounts, etc.
Benefits of High CIBIL Score
A high CIBIL score will put you in a position to negotiate with lenders to get a lower interest rate on the loan. There are many lenders who offer preferential pricing on loan interest rates to people with high credit scores.
According to BankBazaar, the interest rate on home loan or car loan varies from bank to bank, however, if you have a high CIBIL score, you can get a discount on the interest rate. If your CIBIL score is 750 or above, banks will provide you with a competitive interest rate loan.
Banks charge cheaper interest rates for consumers with high CIBIL scores and higher interest rates for those with low or poor CIBIL scores. Hence, it is important to build a good credit profile and monitor your CIBIL score from time to time.
For example, State Bank of India provides interest rates based on CIBIL score. Regular State Bank Of India The home loan interest rate for a credit score above or equal to 800 is 7.05 per cent. The interest rate is 7.35 percent for credit scores 650-699 and 7.55 percent for credit scores 550-649. The interest rate with NTC/without CIBIL score is 7.25 percent.
Housing Development Finance Corp has also increased its retail prime lending rate (RPLR) by 5 basis points (bps), the third increase in a month. The latest increase means that the minimum rate for a borrower with a credit score of over 780 is now 7.05%. Borrowers with a credit score of less than 780 will have to pay a minimum of 7.15% for loans up to Rs 30 lakh and 7.40% for loans between Rs 30 lakh and Rs 75 lakh.
“A good credit score helps you get the best loan and credit card offers based on your eligibility. Every lender you apply for a loan or credit card will examine it and based on your credit score your Your credit score is contained in your credit report, which contains a summary of your past history, which will show whether you have paid off your loans in full and on time. enjoy benefits, and low interest rate is one of them. Almost all lenders consider it. Credit score of 750 and above as ideal. They offer low interest rates to applicants with high credit score Because such borrowers take less risk and are less likely to default on payments. With a higher credit score, you can negotiate for lower interest rates and request for waiving off some additional charges,” said Adil Shetty, CEO , Bankbazaar.com said.
More importantly, banks check your CIBIL score to analyze whether you have ever made a lapse in your financial journey, as recorded in your CIBIL report. So, if you have a good CIBIL score, the lender will not hesitate before granting the loan. But a poor CIBIL score can lead to loan rejections as the lender is uncertain about your creditworthiness.
A good CIBIL score will also ensure that you get a housing loan without any hassle and the same applies for renting a space.
A good or high CIBIL score will also ensure that you get approval for a higher limit from the bank.
How can you improve your credit score?
“Paying EMIs on time, paying more than the minimum dues on credit card bills can help you improve your credit score,” said Sinha of OneScore.
You should only use 15-30% of your credit card limit. Using your credit limit to the fullest shows that you are credit hungry and not able to handle your finances.
Another trick, according to BankBazaar, is to request your bank to increase the credit limit on your credit card. Once the credit limit is increased, you should keep credit utilization low. This will suggest that you are not credit hungry and are able to handle credit.
A long credit history will help you improve your CIBIL score. So, if you have old credit cards with good credit history, it is better not to close them. When you close your credit cards, you lose good credit history and this can affect your CIBIL score.
Correct errors in your CIBIL report (if any): If you have noticed a sudden drop in your CIBIL score, you must check your credit report as it may contain errors.
Sinha said, “Regular monitoring of credit scores, avoiding sharing of personal details on online platforms, unverified apps and reporting any errors promptly can help safeguard your credit health against identity fraud. ”
How to improve credit score and its long term impact on score?
When someone finds an error on their credit report, the first step is to file an online complaint with the credit bureaus to dispute the error. Once the form is submitted, the credit bureau contacts the bank to verify the errors as it cannot resolve the errors on its own.
After confirmation from the bank, the bureau and the bank come up with a formal resolution of the discrepancy within 45 days of the complaint. The user is then informed about the error in the revised score. If discrepancies are not identified on time, it can lead to degradation of credit score and users will have to go for a safer product to improve their credit score. It will take its due time,” Sinha explained.
How you can check your CIBIL Score:
Official CIBIL website https://www.cibil.com. go to
Select ‘Get Your CIBIL Score’
Click “Click Here” to get your FREE Annual CIBIL Score
Enter your name, email id and password. Attach an ID proof (Passport Number, PAN Card, Aadhaar or Voter ID). Then enter your pin code, date of birth and also your phone number
Click ‘Accept and Continue’
You will receive an OTP on your mobile number. Type OTP and select ‘Continue’
Select ‘Go to Dashboard’ and check your credit score
You will be redirected to the website myscore.cibil.com
Click on ‘Member Login’ to view your CIBIL Score.