India is an emerging country in terms of finance and economy, but 70% people still have no clue on what a cibil rating is and how to manage the same. As they live in rural areas and there is no on to educate them on the same, but what they do not realize is their ratings going down and find difficulties when applied for a loan.
When it comes to credit scores, many people are just confused on their current cibil rating, how much they actually need and how do they proceed to achieve the desired goal. It always depends on your scoring module which the credit bureau lay off.
The common range where the cibil score is evaluated is from 300 to 850. The higher your score would be the better you have chances of getting your loan sanctioned on time. It’s not mandatory to achieve an 850 in cibil to get the desired financial product, as different banks and non-banking institutions have different norms to evaluate the customer’s cibil, you can get a loan with the range of 700 as well.
Ideally, you won’t land up in the bottom score like 300, but unfortunately in our country there are many people who have bad cibil score and don’t have a clue about it, as they think is a not a big deal. In India we still have people who have traditional thinking when it comes to loans; they prefer not to take a loan at all in their financial crises or loan for buying a product per se, this leads to no cibil report at all or a low cibil score. Small transactions are supposed to be made to keep your score healthy and Indian government is taking initiatives to educate people on the same.
Well, if you have faced such situation where you were unaware of your cibil rating and it turns out its low enough to get your application rejected what are the measures you can take,
There is a common perception that the 800+ score in cibil are not achievable at all, but bad news folks! There are more than 15% people who are in the bracket of 800+ score. If you are in the range of terrible credit deal with it, it’s not that hard. Whatever mistakes you have made in the past try to not to do it in the future, if possible take a financial counselor’s advice of money management and getting close to the perfect score you always dreamt of. Even if you have a history of missed payments on your accounts, you will be able to achieve the perfect score as the negative marks only stay in your report for 7 years to the maximum. It will be suggested to use credit only on big purchases and use cash for small transactions.
Having a great credit score has its own gains and benefits like,
The banks do not have a problem getting the loans approved before the given turnaround time. If you have a good cibil score you will get your loan sanction done in no time.
Once the banks notice you have a good history of making payments on time, they will headhunt you for a credit card with amazing offers. Well it’s up to you if you want to go for it as owning multiple credit cards has its own benefits and losses.
Not only an 800+ score guarantees you a speedy loan approval but can also give you an opportunity of a 0% interest. Yes, it is possible but maintaining such score requires a lot of dedication in terms of managing the bills and paying them on time.
It’s not a crime to be in the bottom of the credit rating. If you manage your expenses and pay all your bills on time you will be able to avail a lot of hidden benefits associated to a perfect cibil score.