How Your CIBIL Report Can Help You - or Hurt You
How Your CIBIL Report Can Help You - or Hurt You
It is used as an indication of trustworthiness by lenders, who use the number as a way to help predict how you'll treat their credit line based on your financial history.
" Knowing someone's score is important, but it's much more important to know someone's attitudes toward money," Pam Friedman, certified financial planner "
Generally, the higher the number, the more trustworthy you appear to lenders. The lower your score, the more difficulty you will face. But it's not just lenders who may take your credit score into account - surveys and studies have found your credit score can affect everything from whether you're able to rent an apartment to who may be willing to date you.
Here are Four ways your credit score can impact your life:
It is used as an indication of trustworthiness by lenders, who use the number as a way to help predict how you'll treat their credit line based on your financial history.
" Knowing someone's score is important, but it's much more important to know someone's attitudes toward money," Pam Friedman, certified financial planner "
Generally, the higher the number, the more trustworthy you appear to lenders. The lower your score, the more difficulty you will face. But it's not just lenders who may take your credit score into account - surveys and studies have found your credit score can affect everything from whether you're able to rent an apartment to who may be willing to date you.
- It affects the interest rate on your mortgage :- The higher your score, the better the interest rate on your mortgage will be .
- It determines whether your loan gets approved :-
Taking out a private or auto loan usually requires you to have a good score. According to Credit Karma, your credit score is the biggest factor in determining your auto loan rate.
It's not impossible to get a loan with a low credit score, but you'll most likely face higher interest rates .
- It changes the way you pay for things :-
Just like a good credit score can get you pre-approved cards that offer rewards points or cash-back offers, a low credit score can hinder your ability to use credit cards.
When you have a low credit score that denotes a spotty credit history, lenders can decrease your limit if you do not make your payments on time. They could also decline your request for a credit line increase or lower APR on an existing card, reports Credit.com.
Taking out a private or auto loan usually requires you to have a good score. According to Credit Karma, your credit score is the biggest factor in determining your auto loan rate.
It's not impossible to get a loan with a low credit score, but you'll most likely face higher interest rates .
Just like a good credit score can get you pre-approved cards that offer rewards points or cash-back offers, a low credit score can hinder your ability to use credit cards.
When you have a low credit score that denotes a spotty credit history, lenders can decrease your limit if you do not make your payments on time. They could also decline your request for a credit line increase or lower APR on an existing card, reports Credit.com.
- It could keep you from getting hired :-
Employers in most states have the right to run credit reports (the document that's reflected in your credit score) on their prospective employees. The version of the report presented to employers is not exactly the same that a lender would see, but it can still bring major red flags to light.
Any Question Regarding CIBIL and CIBIL Improvement Call Pankit Shah (M) +91 9227230943
Pankit A Shah & Associates
Chartered Accountant
35, 4th Floor Shree Krishna Tower , Near Passport Seva Kendra , Mithakhali Six Road , Navrangpura , Ahmedabad - 380009
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