Your CIBIL score is a three-digit number that ranges from 300 to 900 and is used to assess your creditworthiness. The score is calculated using your credit history and the information contained in your CIBIL report, which Transunion CIBIL keeps on file.Before approving your loan, your lender will check your CIBIL score to ensure your ability to repay. The closer you are to a credit score of 900, the better your chances of obtaining an easy loan approval. A score of less than 300 is considered poor.The minimum CIBIL score required to apply for a home loan in India differs depending on the lender. For one, the cut-off point could be 700, while for another, it could be 650.
Because scores ranging from 650 to 749 are considered ‘good,’ and scores ranging from 750 and up are considered ‘excellent.’ The actual amount, on the other hand, is determined by the lender.For most lenders, the minimum CIBIL score required to approve a personal loan is 750.Having a higher CIBIL score boosts your prospects of getting a better deal on your personal loan. A score on the lower side, however, hurts your chances of availing finance.
Building A Good Credit Score
Here are three key steps you can take to improve and maintain your credit score and move closer to financial freedom:
Leverage your credit opportunities carefully
Apply for credit with caution. While many lenders may be offering you a variety of different credit cards and loan opportunities, remember to apply for new loans in moderation. This demonstrates to lenders that you are not always in need of credit.
Maintain a carefully balanced mix of secured and unsecured loans (for example, a home loan and an auto loan) (such as personal loans, consumer durables and credit cards).
Don’t spend more than 30% of your credit limit. You are not required to maximise your credit utilization limit simply because you have a credit card. Control your usage and avoid going overboard.
Pay on time, every single time
Remember to always pay your credit card bills and EMIs on time, every time. A single late payment can quickly accumulate into a much larger sum simply because you missed the payment due date and now face interest and late payment fees. Lenders are also concerned about this.
Monitor your credit score and profile regularly
Someone else’s carelessness may have an impact on your credit score and your ability to obtain credit when you need it. If you were a co-signer or guarantor on someone else’s loan, make sure you keep track of all co-signed, guaranteed, and joint accounts. You may be held equally liable for any unpaid balances in these accounts.
Regularly monitor and report on your CIBIL score. If you notice any incorrect information or misrepresentation, point it out to avoid an unpleasant surprise in the form of a rejected loan application. A high score also qualifies you for a loan when the opportunity arises.Customers who meet the eligibility criteria for Kotak Bank personal loans can choose from a variety of personal loan schemes with low interest rates. Kotak Mahindra Bank Personal loan eligibility is determined by factors such as age, salary, occupation, and credit score. If you are employed or self-employed, you can apply for a personal loan from Kotak Bank. However, eligibility criteria for both salaried and self-employed workers may differ.