Now More Than Ever, Women Should Build Their CIBIL Score
CIBIL scores are of importance not only to men but also women. With the percentage of working women increasing rapidly, they need to keep their finances in check to avoid getting a bad credit score. Here are some considerations on how they should build their CIBIL score.
About CIBIL score
CIBIL scores indicate the status of various financial aspects of an individual such as payment history, loan accounts, credit history length, outstanding debts and other related factors. When your CIBIL score is assessed, it is reported to financial institutions and banks, which have their own benchmark regarding a good or bad score. Some factors such as income, gender, education, savings accounts and ethnicity or race do not influence the credit score.
Significance of building your CIBIL score
CIBIL score is important, especially when you want to apply for a loan. Banks approve your loan only after checking your CIBIL score. A good score will speed up the loan process. A lender checks the CIBIL score or credit score to determine the eligibility of the applicant for the loan. In case your credit score is low, or not up to their expectations, it will not be rejected by the lender, but if the score is good it can help in easier progress of steps for the loan approval.
When you want to avail a credit card or loan, the CIBIL score is a vital factor in making you eligible for the loan or credit card. Here are some of the factors affected by the CIBIL score.
Approval of credit
When you apply for credit to a financial institution or a bank, they look at your CIBIL report to ensure your reliability. The credit grant is approved faster, if the score is good, and if it is bad,, the chances of a quick and hassle free approval go down. Whether you apply for a mortgage, personal, car, home or credit card loan, good CIBIL score is a key factor to consider.
Higher interest rate
With a bad score, you will be forced to pay higher interest rates on the borrowed money, and also borrow money from lenders who are not reliable. On the other hand, good scores help in low interest rates and loan terms. You can save more money this way.
A good CIBIL score ensures your housing loan is approved quickly. Other approvals such as a new plan for your mobile phone, insurance policies are also influenced by the CIBIL score. With a good score, you can get lesser premiums and cost effective plans.
Advantages of good CIBIL credit score
With good scores, you can get low interest rates on your credit card use, have your mortgage approved, avoid paying security deposit for cell phone, get approval for higher credit limit, get easy approval for renting, leasing or buying property and have better negotiating power.
Women should be careful about a few things related to credit rating, whey they plan to marry as it can help them in future after their marriage. If you are adding your husband’s name after marriage inform about it to the banks, lenders, and CIBIL, and credit card companies. This will ensure the changes are precisely made and your credit history is properly maintained under your new name.
Avoid surrendering all the bank accounts and cards present in your name. Instead, opt for joint account feature or add on credit card. Having an account and credit card in your name would be of use in future like when your spouse’s credit rating is not good, your healthy score could be used to smooth over an approval issue.
In case you are not in possession of credit trail individually, now is the right time to start. To avail a loan you need a minimum of six months trail to get an established credit behavior.