When you apply for a loan, you often hear about your CIBIL or credit score. A high credit score offers several benefits. Not only does it help in getting approved for loans, but it also gives you access to financial products such as premium credit cards and exclusive banking services.
Additionally, some companies check the credit scores of candidates during recruitment, especially for positions involving finance or sensitive information. Therefore, a high CIBIL score can also assist you in securing a job. Let’s explore the benefits of having a high credit score.
Speed Up the Loan Approval Process
Lenders often expedite the loan approval process for applicants with high credit scores since they pose less risk. A good credit score means quicker loan approvals and the possibility of securing a pre-approved loan.
Loan at a Low Interest Rate
Whether it’s a home loan, personal loan, or auto loan, a high credit score ensures you are offered a lower interest rate. You will also receive a credit card with a lower interest rate, saving you significant money on interest over time.
You Will Get the Desired Deal
A high credit score gives you more bargaining power. You can negotiate better terms, including lower interest rates and more favourable repayment conditions.
Insurance Premium Will Be Low
Certain insurance companies check credit scores when determining premiums. A high credit score can result in a lower insurance premium.
Credit Limit Will Be Higher
With a high credit score, banks find your profile more attractive, increasing the likelihood of loan and credit card approvals. You’ll also be eligible for higher credit limits and more favourable terms.