Since your credit score is crucial for your financial identity, building and maintaining a good credit score is essential. A low credit score can make your financial investments expensive. On the other hand, your good credit score can provide you with a competitive edge and benefits during lending judgments. You can download the CIBIL score app to check your CIBIL score. Regardless of the loan type from a bank, NBFC, or other financial establishments, your credit score shows your financial character. A good credit score can help your loan application get approved or rejected. You can go through the free CIBIL score check on the official websites of third-party finance platforms or credit bureaus.
Importance of Maintaining a Good Credit Score Even if You Don’t Plan to Get a Loan
Your credit score speaks to your opted lenders on your behalf. A good credit score comes under the 750 to 900 range. A credit score over 750 is considered good, and you can quickly get a loan. The more your credit score, the better it will be. A few banks may prefer a high rating, but a credit score below 700 is considered poor, and your lenders may reject your loan application. A few benefits of maintaining a good credit score even if you do not intend to apply for a loan are as follows:
A vital privilege of a good credit score is getting loans with low-interest rates. When you submit applications for a loan or a credit card, a lender checks your credit score to estimate your interest rate. You are eligible for the lowest interest rates if you have high credit scores. On the other hand, borrowers with poor interest rates get high-interest rates.
Boosts the Possibility of Qualifying for a Loan or a Credit Card
If a lender has rejected your loan or credit card application, you know how upsetting it is. Building and maintaining good credit scores is advantageous. It increases the possibility of qualifying for a loan or a credit card. Your credit score and report are essential aspects that lenders consider before approving your application for a loan or a credit card. You can go through the free CIBIL score check on the official portals of the credit bureaus and third-party finance platforms or download the CIBIL score app.
Approval for Specific Jobs
A few jobs with money or security clearance positions need a personal credit check. In such cases, credit checks are essential to ensure that you can handle the finances properly and are not susceptible to bribery due to financial crunch. If your credit score is poor, you might not be eligible for specific jobs. Hence, building and maintaining credit scores is necessary.
Good Credit Scores Can Result in Rewards
Besides a high credit limit, building a good credit score and maintaining it can fetch you rewards. Numerous credit reward cards need exceptional credit for approval. Such tips include travel rewards which you can use to fund your trips, and cashback reward cards help you regain a good percentage of your spending. You can check your credit score by downloading the CIBIL score app.
High Loan Limits and Large Credit Cards
If your credit scores are excellent, you can apply for large loans with high limits like the Jumbo Loans. Large loans with high limits are required to take out mortgages in a few posh areas. You might also be eligible for credit cards with high limits.
Low Insurance Rates
Good credit scores can save you some bucks on insurance. With the help of credit scores, insurance firms decide whether you are creditworthy and how much they should charge you. You can go through the free CIBIL score check via the official platform of the credit bureaus or third-party finance portals.
Building and maintaining a solid credit portfolio is vital because your credit score and report play a significant role when lenders decide whether they should approve your loan application. If you have a low credit score, it may take a long time to boost your credit score to plan for a loan application in the future. You can install the CIBIL score app to check your credit score. Your credit score summarises your entire credit report, financial health, and credit ability. You can undergo the free CIBIL score check with the help of the official portals of credit bureaus, banks, or third-party finance platforms.