Today we will look at the major role the Cibil score of the credit score plays concerning home loans and how the borrower or the customer has to take care and maintain his or her Cibil score when opted for a home loan. Let’s go ahead and learn about the importance of the Cibil score.
- Firstly what is a Cibil score in general?
A Cibil score of an individual is nothing but the credit history of him or her on how they have made their payments throughout their loan tenure period. And this Cibil score is officially offered by the credit bureau trans union. This has all the relevant and up to date records of all the Indian citizens who are the bank holders and who all have availed for different types of loans. All these records are the basic and general evidence of their repayment history relating to their loan amount.
- What is the importance of the Cibil score?
Cibil score or the borrower's credit history is something that the lender or the lending institutions like the banks or the non-banking financial companies look at. This represents and will have a very strong impact on the financial capabilities of the borrower or the customer which is considered to be the main ideal point for the lending institutions to give the borrowers with the loan amount. And that is the reason why the Cibil score is to be looked at with the utmost importance by the borrowers and the customers.
- How is the Cibil score represented?
Cibil score,has a very simple representation just in the form of a 3 digit number. And this 3 digit number representation has certain ranges that are considered to be good or bad. For instance, when a borrower whose Cibil score lies or ranges between 650 and can go up to a range of 750 is considered to have a good potential of the lenders to offer you with the loans. The Axis Bank home loan considers the Cibil score above 700 and up to 750 to be a good score and hence the candidate is more on the eligible side to get offered the home loan from that respective bank. While the Cibil score starts from a level of 550 and which can range up to a score of 649 then they are to be considered as just the average Cibil score of the borrower or the customer. Now any kind of Cibil score that is below the average mentioned range level is known to be a bad Cibil score or is considered as a poor credit score and there are very few chances for the borrowers with such types of Cibil scores to be offered with the home loans.
- How can an individual check their Cibil scores?
It is a very simple and easy process. One can check their Cibil scores by first visiting the website of Cibil. You will be directed to a page that states the individual to select their subscription plan. After the selection, you will be asked to enter all your relevant details. After this, you have the login details which can be further used to check your Cibil score after the complete registration process.
The best range of Cibil score for the home loan can be up to 750 and above, and the borrowers will have an ultimate advantage to get their hands on some of the best Cibil scores and have a Cibil score more than 750 can also make chances higher for the borrowers and the customers to have a low rate of interest on their home loans provided by the banks. This is the reason why one should always make sure to maintain the Cibil score to an extent where he or she can have the best offers and deals on home loans.
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