From personal loans to home loans, your credit score affects your eligibility for any loan you apply for. A good score boosts your chances, while a bad one does the opposite.
India’s love for UPI is undeniable. With an average exceeding 650 million transactions per day, it is clearly the crowd favourite. A quick scan and a beep can settle payments for anything and everything.
From buying vegetables at the local market to splitting a dinner bill with friends, it covers it all.
What started as a government-backed initiative has become a national habit. UPI has ushered in a new era of convenience. And as a result, it’s now an integral part of how we live, shop, and move through the day.
What’s the first thing that comes to your mind after hearing the word “credit report?” CIBIL score, right? Well, that’s instinctive.
Imagine applying for a personal loan and spotting “Suit Filed” next to your name in your credit report. Confused? You’re not alone.
What’s the first thing lenders check while considering your loan or credit card request? It’s your CIBIL score.
Your CIBIL score is your financial report card. This simple, three-digit number ranges from 300 to 900. It reflects your ability to manage debt. Being closer to 900 improves your chances of landing credit. What’s more? You can get better terms for your good credit behaviour.
In short, your CIBIL score tells lenders whether you’re a responsible borrower or a risky one.
For years, your credit report lagged behind your financial life. Paid off a card? Closed a loan? You’d still wait weeks before it reflected, slowing approvals and making borrowing stressful when you needed money the most.
Rajiv had to deal with an unplanned cost and applied for a personal loan. Since his credit score ratings were good, the process was quick and the terms were comfortable. A co-worker with a weaker score had a different experience, facing delays and extra checks before approval.
Every time you apply for a loan or credit card, four institutions are running a background check. And their opinion matters affect your loan approvals, interest rates, and even credit card limits.
Looking forward to a hike this year to finally land those low-interest loans? You’re on the right path - a salary bump definitely helps.
But here’s the twist: lenders aren’t just convinced by your pay slip. The real dealbreaker is what the credit bureau says. When applying for personal loans, lenders rely on the score that these agencies give you as a measure of your financial behaviour.