What is Healthy Credit Score ?
Credit Score is a three digit number which ranges from 300 – 900 that represents the financial capacity of an individual.
A healthy credit score plays a crucial role in our financial life. It determines the creditworthiness of the borrower. We can say that credit score is a financial identity of a borrower.
Why is it Important ?
Lending is a matter of trust and faith. Credit report helps in building trust. It makes borrower trustworthy.
Just as your twelfth standard report card is essential for college admission. In the similar manner, your credit score is essential if you go for borrowing. As it shows the borrower’s past credit history.
Let us understand this better –
Just like your twelfth standard score determines your eligibility for any stream. In the same way, your CIBIL score shows how much a bank can lend you and how much flexibility you can get on interest rates.
BOUNCE BACK FROM LOW CREDIT SCORE!
Top 10 Advantage of having Good Credit Score
- Fast Approvals
- Quick response from banks
- Flexibility on interest rate range
- Benefits in Credit Cards
- Approval for Higher amount
- Lesser chances of rejection
- More offers or discounts
- Boost goodwill & Increases eligibility
- Reduces future financial crisis
- Other financial benefits