Log In

 

Company Name : Bajaj Finserv

Wednesday, April 19, 2017 1:55PM IST (8:25AM GMT)

(NSE:BAJAJFINSV)

How Does CIBIL Score Impact Your Borrowing


Pune, Maharashtra, India

CIBIL (Credit Information Bureau India Limited) is credit information company in India, that gathers financial data for maintaining credit records. Information is shared by partners such as banks, lenders and other financial institution. This information is evaluated by CIBIL to understand the creditworthiness of a person. Based on the evaluation a score ranging between 300 and 900 is derived, that fundamentally signifies the credit history of an individual.

So when you are planning to take a Personal Loan or a home loan it is advised to get your CIBIL​ score checked. Your CIBIL score principally highlights your financial picture and helps lending institutes to assess the capability of repayment. A person with good credit score, at times, enjoys the benefit of a cheaper interest rate on Personal Loan. But, if the credit score is less than a minimum benchmark set by the lender, the application is rejected immediately.

Generally, a person with a credit score of 750 and above is considered to be a good borrower. Also, a score below 600 reflects that a person has defaulted on payments in past. However, different lenders have a different definition of good credit score. Hence, it is very important to maintain your CIBIL score for getting any kind of loan.

How to improve your credit score

You can follow few simple steps to improve your credit score.

Repayment of credit card spends

  • To improve your score, repay your balances and try to keep them low at all point of time
  •  Even if you clear the full balance every month but your utilization is higher the credit score might be impacted. Hence, you need to keep the necessary checks and balances on the spends
  • Also, some of the lenders assess you through the balance reported to the bureau, so it becomes necessary for you to keep the spending in limit
Pay your EMIs and bills on time
  • Set reminders to pay your credit card bill because even one single default can impact your CIBIL score
  • Make necessary arrangements to pay your all you EMIs on time
Servicing Debt
  • Taking loan for a longer period and paying your EMI’s on time has a positive impact on your credit score
  • Paying debt on time for a longer duration builds the repayment history stronger and better
Frequent requirement of new credit
  • Lenders check your CIBIL score every time you apply for a new loan
  • Reducing the frequency of new loan application will help in maintaining the credit score
Healthy mix of credit
  • Timely servicing a mix of secured and unsecured loan will help in improving your financial history
  • A mix of Personal Loan and mortgage loan is a healthy mix and if it's paid off timely your credit score recovers and improves considerably
However, you may opt for a personal loan for debt consolidation as the process of getting a personal loan is much easier. To understand the monthly outgo towards your total loan amount you may use debt consolidation calculator offered by Bajaj Finserv. Bajaj Finserv, India’s most diversified financial company, through its lending arm Bajaj Finance disburses the loan within 72 hours based on details filled by the applicant on their website. The company runs a quick background check and if it meets all the criteria’s the loan application is approved instantly.
 
Bajaj Finserv, in its current scheme, is offering Tanishq vouchers worth Rs.10,000, for a loan amount above 10lakhs. The offer is valid between 17th to 23rd April 2017.

About Bajaj Finance Ltd.

Bajaj Finance Limited, the lending arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 7 million customers across the country. Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Personal Loans, Loan against Property, Small Business Loans, Home Loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle re-financing Loans. Bajaj Finance Limited prides itself for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.

To know more please visit www.bajajfinserv.in/finance


More News from Bajaj Finserv

04/07/2017 2:50PM

Bajaj Finance Offers Best Interest Rate of 8.05 percent on Fixed Deposit Scheme

While nearing to retirement or retired already, one should think of investing a part of their saving in a secured financial instrument like Fixed Deposit. The advantage of investing in fixed Deposit is that it offers ...

05/06/2017 1:08PM

Bajaj Finserv Business Loan Witnesses a Growth of 18 Percent in the Quarter Ended March 2017

Bajaj Finserv Ltd., India's most diversified financial services company, through its lending arm Bajaj Finance Ltd. disbursed loan to SMEs of Rs. 1275 crore in the quarter ended March'17. The business loan witnessed ...

26/05/2017 4:41PM

Bajaj Finserv Reduces Home Loan Interest Rate to 8.50 Percent in its Special Offer

Bajaj Finserv, India's most diversified financial company, through its lending arm Bajaj Finance, is offering home loans at just 8.50% for a limited period. The special offer is valid till May 29, 2017.

Similar News

24/07/2017 7:25PM

क्यूएनबी ग्रुप ने भारत में परिचालन शुरू किया

मध्य पूर्व और अफ्रीका के सबसे बड़े वित्तीय संस्थान क्यूएनबी ग्रुप (QNB Group) ने हाल में देश की आर्थिक राजधानी, मुंबई शहर में अपने परिचालनों की शुरुआत की है।   भारत में इस समूह के परिचालनों की ...

No Image

24/07/2017 4:35PM

Mavenir Announces R & D Center of Excellence Focused on 5G Network and Services

Mavenir, the leader in accelerating and redefining network transformation for Service Providers, today announced a new R&D and 5G Innovation centre of excellence in Ra'anana, Israel focused on 5G Network and ...

News Summary

CIBIL (Credit Information Bureau India Limited) is credit information company in India, that gathers financial data for maintaining credit records.