When you apply for any loan, be it personal, home or business, the first thing the lender looks for is an excellent Credit Score. Your credit score plays a major part in getting your loan approved. Now, you might be wondering, what is a good Credit Score?

A Look at the Basics

A credit score is a numerical representation of your creditworthiness, which is calculated based on your Credit Information Report (CIR). A CIR is an individual’s credit payment history across different loan types and credit institutions over a period of time. In India, the Credit Information Bureau Limited (CIBIL) is responsible for creating a CIR for each individual. A good CIBIL score, which is another name for credit score in India, can do wonders for your loan applications and hence should be something to watch out for.

As per CIBIL, scores ranging from 700 to 900 is a good Credit Score range, and 900 is considered the best possible score. You should also ensure that the Credit Score calculations are done based on factual data so as to provide a true picture of your credit standing.

As per CIBIL, scores ranging from 700 to 900 is a good Credit Score range, and 900 is considered the best possible score. You should also ensure that the Credit Score calculations are done based on factual data so as to provide a true picture of your credit standing.

CIBIL Score for Personal Loan

Personal loans are mortgages you take to meet your monetary requirements like purchasing a new TV, going on a vacation, etc. The average credit score for getting a personal loan approved would need to be between 650 to 750. To make sure that your credit score stays in the required range, make a concentrated effort to keep your credit transactions in check.

Read Blog : A Good CIBIL Score Can Help You Get a Better Deal On Your Personal Loan

CIBIL Score for Car Loan

Planning on purchasing a new car? Before you start looking for sources to finance your purchase, ensure that you have an excellent credit score. Generally, lenders look for a credit score of above 700 points before approving your car loan application.

Average Credit Score for Home Loan

Financial service providers are usually the most stringent while approving home loans owing to their burgeoning demand. A good credit score range for home loans would lie somewhere between 750 to 800 points. Banks like Bajaj Finserv offer Home Loans, with benefits that include a low interest rates and processing fee when you apply online.

Now that you have a clear idea about the different credit score requirements for varied types of loans, let’s delve into the credit score calculation process.

In India, there are various factors which influence your credit score such as payment history, outstanding debt, length of credit history, number and types of loan accounts, utilisation, applications for new credit etc. However, it is important to note that each member i.e. Banks, NBFCs etc. (which elect to use the CIBIL Score) has its own benchmark that constitutes a “good” score and this varies from bank to bank.

Once you have a respectable credit score, you can opt for the varied financial services offered by banks and institutions like Bajaj Finserv, these include Personal Loans, Home Loans, Business Loans, Gold Loans, and more.

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