Importance Of Maintaining A Good CIBIL Score

The CIBIL score is very important for availing credit from any financial institution. A CIBIL score is the first impression of the lending organization about a borrower.

Maintaining a good CIBIL score is of tremendous importance. Below are the aspects which are influenced by CIBIL scores:

Credit Approvals

If there is one thing that matters the most while banks take the decision whether to grant a loan to an individual, it is the CIBIL score. A bad CIBIL score reduces the chances of getting financing of any kind. On the other hand, a good CIBIL score may make things a cakewalk. 

Interest Rates

CIBIL score is a determiner of the interest rate at which the bank will offer a fund to an individual. The better the credit history, the better will be the interest rate. 

Other Activities

Organizations outside the financial industry have now started using the CIBIL Score as well. A good CIBIL score might help someone get a better mobile plan or a discount on insurance premiums.