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The CIBIL score is a loan eligibility marker that indicates to banks that the customer has a healthy EMI repayment history and greater creditworthiness.
Why you should maintain a good CIBIL score. (Representative Image)
The CIBIL score is a creditworthiness marker maintained by the Credit Information Bureau (India) Limited, which denotes the health of an individual’s loan management and repayment history. A strong CIBIL score makes an individual eligible to receive better credit card schemes and higher loans at cheaper interest rates in the future. According to financial experts, a CIBIL score above 700 is considered a positive indicator of a person’s credit history and loan maintenance. Here are multiple benefits of keeping your CIBIL score above the mark of 700.
Benefits Of A CIBIL Score Exceeding 700
Quicker Loan Approvals
Banks consider customers with a CIBIL score above 700 as responsible individuals, with a history of timely loan repayments. Thus, approving their applications for loans quickly than those who have had an unideal past with credit-based activities. Lenders perceive loans handed over to such individuals as low-risk investments, feeling assured that EMIs will be paid on time. In such cases, customers also enjoy fewer documentation and verification hurdles.
Lower Interest Rates
Individuals with a good CIBIL score qualify for cheaper interest rates on their loans, enjoying a reduced cost of borrowing from their bank and making significant savings on their regular EMIs.
High Credit Limits
Banks often deny unreliable customers huge loans and higher credit card limits because of their unsatisfactory CIBIL score, indicating poor repayment history. The better the creditworthiness, the higher the credit limits issued to an individual.
Eases Negotiations
Loan applicants with a CIBIL score of 700 or more enjoy the leverage to negotiate better loan terms with the lending body. Applicants with a healthy loan management past are more likely to receive lower interest rate on loans, pay lower processing fees and get their preferred repayment schedules during the loan term.
Pre-Approved Offers
Additionally, pre-approved loan offers are provided to customers who have high credit scores, involving less paperwork and fast disbursal. Having a CIBIL score above 700 opens doors for you to access premium card offerings and multiple loan products offered by the bank. Such customers often receive benefits such as cashback, rewards and lounge access on effective credit card usage and EMI payments.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 11, 2025, 15:55 IST
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