High credit score can get you a cheaper personal loan

One of the best loans which are available in the market is a personal loan. With no strings attached to it, you can use the funds in any way you want. Despite of having other loan options like car loans, bike loans, loan against property and many more, people are taking personal loan to satisfy their needs and wants. It is so easy to avail one that you get your loan sanctioned within minutes. In some cases you already have a pre-approved loan available towards your account and you can get it with a few clicks and voila, you get the money credited towards your account.

Want to have the above scenario with yourself? Did you just logged in to your bank account just to check if you have a pre-approved loan offer? Not many banks offer such service unless you have an account with HDFC. HDFC personal loan is the best and they offer the best there is in the market. Apart from the banking irony, what is more important for such kind of a privilege is your credit score.

A credit score plays an important role when it comes to loan sanctions. On the other hand if you have a high cibil score, is rest assured that the offers will keep rolling in towards your account and you can use these offers at your ease. Not only will you get a loan on a cheaper interest rate, but also you will get the best personal loan offers.

What is the range of a great cibil score?

A typical credit score falls in the range of 300-900. You are considered to be a good profile if you happen to have a score above 750. But on the other hand if you are in the range of 800 and above you are considered to be the best of loan eligibility and the lenders will be always after you offering great financial products.

Benefits of high cibil score

You are always a first customer to be offered a loan if you need one. The lender has special rights for people with high score and they are considered to be a valuable customer. Not only this, when you opt for a loan, you have the power to negotiate terms with the lender all by yourself. You can negotiate on the processing fees and also the interest rates. You can set terms with the lender and get the loan processed according to your will.

How to improve your good cibil to best cibil?

Well, the answer to this is it will take a lot of time to get through to a great cibil. If you have been a defaulter in the past or you have a settlement towards your report, you can simply kiss your dream a goodbye because defaults and settlements stay on your report for a very long time.

On the other hand, you can start building your credit by making all your payments on time, fix errors on your credit report if you find any, increase credit limit of your credit card and so on. You can still get a loan for low cibil score in the market but you will encounter a lot of problems and you will end up paying high processing charges and high interests on the loan as compared to market standards.

A great cibil score comes with a lot of dedication and financial integrity. A lot of us just pay the minimum due amount every month thinking this will not affect the credit but unfortunately it does and you end up not only paying the late charges and interest but also your financial peace.

 

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