CIBIL is the most trusted credit agency of India, as its results are considered as the most accurate among all credit rating agencies. A good or high CIBIL score is suggestive of good and responsible management of a company's finances and a person. Hence, it is important to improve your CIBIL score and maintain it at a high value.
Apart from easy approval of loans, having a good CIBIL score entitles a borrower to a number of perks. Some of the advantages are as follows:
- Lower interest rates: People with a good CIBIL score get loans at lower interest rates. Those with lower CIBIL scores are generally charged with high rates of interest.
- Fast loan approvals: Good CIBIL score reflects you as a good borrower in a lender's eyes. Hence, banks try to approve loans as fast as possible. People with lower CIBIL scores have to submit a number of documents and have to go through a long process to get their loans approved.
- Easy credit: As mentioned, a high CIBIL score is an indicator of good financial management by a person or a company, and thus lenders tend to be more trustworthy towards such people.
- Negotiation authority: People with high CIBIL scores get the authority to negotiate with banks/financial institutions to negotiate for a lower rate of interest.
- Higher loan limit: A high CIBIL score can help you get get a higher limit on the amount of loan that you can borrow, that too at a low-interest rate.
- The credit card offers: Banks generally tend to provide exciting offers and schemes to people that have a good CIBIL score.
