Credit Score- CIBIL score or credit score is a proof of the financial credibility of any person. There are many advantages of having a high CIBIL score. At the same time, if it is low, then it has many disadvantages. A credit score above 700 is considered good. A person having a good credit score easily gets loan and credit card approval. Apart from this, one gets the benefit of low interest rate in the loan and loan processing is also fast. Let us know about some of the major benefits of a high credit score.
Fast Approval
A credit score above 700 or 750 indicates that the applicant has a history of making timely payments and managing credit wisely. It is easier for banks to approve loan or credit card applications of such customers. A score above 750 is considered quite good, it increases the chances of approval with minimal scrutiny. Such customers have a low risk of default. Applications of customers with high credit scores are processed quickly. When the score is above 700, the bank requires fewer documents or less verification, which speeds up the process.
Credit limit increases
A good CIBIL score gives you higher credit limits on credit cards and loans. Banks trust such customers and are willing to lend them a higher amount. This is especially beneficial for big expenses like buying a house or a car, where more funding is required.
Can do negotiation
Customers with strong credit scores can negotiate better terms from banks, be it lower interest rates, lower processing fees or flexible repayment terms.
Pre-approved offers
Lenders often offer pre-approved loans to customers with high credit scores. These offers usually involve less paperwork and the loan is disbursed faster.
Other attractive offers
Many premium credit card and loan products are offered only to individuals who have a high credit score. Having a score above 700 can get you benefits like cashback, rewards or airport lounge access.