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Credit card eligibility: Whenever you go to the bank to get a credit card or loan, the bank checks your CIBIL score in the first minute. Even for giving a credit card, the bank will want to know your CIBIL score. With the help of the CIBIL score, the bank provides you with this kind of financial facility. If your CIBIL score is good, then any bank can provide you a loan very easily. CIBIL score is also required for a credit card.

Know what is CIBIL score is-

CIBIL score is a three-digit number. The range of CIBIL scores is from 300 to 900 points. It provides your eligibility to take a loan. Apart from this, this number is decided based on your old loan, credit card bill, etc. If you keep paying all your debts (debt effect on CIBIL score) and card bills on time, then in such a situation your CIBIL score becomes even better. Whereas if you default on the loan, then your CIBIL score becomes bad.

If you have this much CIBIL score, then you will get a credit card-

If your CIBIL score is between 300-500, then it is counted in the category of bad (bad range of CIBIL score). On the other hand, if your CIBIL score is between 500 to 650, then it is considered an average CIBIL. If your CIBIL score is between 650-750, then it is considered an excellent CIBIL score. If your score (good CIBIL score) is between 750-900, then it is an excellent score. Whoever has a score above 750, does not face any problem in getting a loan or getting a credit card. That is, if your CIBIL score (CIBIL score above 750) is more than 750, then in this situation you get a credit card very easily.

Benefits of having a good CIBIL score-

If your CIBIL score is good, then you can get many benefits because of it. Whenever a bank gives you a loan, then first of all it checks the CIBIL score (benefits of having a good CIBIL score). In such a situation, if your CIBIL score is good, then you get a loan at a very cheap price. Even sometimes you are offered a pre-approved loan, that is, you can also be given the facility of an instant loan (how to take an instant loan) i.e. money coming into the account in a few minutes.

These will be the disadvantages of a bad CIBIL score -

If you have a bad CIBIL score, then there is a problem in getting a loan. If the CIBIL score is bad (effects of bad cibil score), then any bank, small finance bank, or NBFC will either not give a loan or will charge expensive interest rates. Not only this, if the CIBIL score is bad, many times insurance companies also talk about charging higher premiums. The company may also refuse to give insurance. Apart from this, you will also face problems in getting other loans including home loans and car loans on poor CIBIL scores (cibil score kaise sudhare).
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The loan is not available on time-

There may be a delay in getting a loan if the CIBIL score is poor because if there is a poor CIBIL score, the verification of more documents goes on for a long time and so much time is spent in the loan process that you are not able to get the money at the time of need. Apart from this, a poor CIBIL score comes in the way of taking property on lease for business. In this situation, you may have to mortgage something for the loan.

This is why the CIBIL score gets poor-

With the help of CIBIL Score, any bank (latest bank update) checks whether you can get a loan or not. Every bank checks the CIBIL score before giving a loan. Because of this, the bank can understand whether you will be able to repay the loan on time or not. Sometimes, due to some mistakes, your CIBIL score gets spoiled. Let's know about this.

Not paying the installments on time-

If there is already a loan running in your name and you miss any installment of that loan, then it has a direct impact on your CIBIL score. Many times, due to this, your CIBIL score also decreases. If you do not pay more EMI or default on the loan, then due to this also your CIBIL score gets spoiled (how to improve the cibil score).

CIBIL score can also deteriorate due to this -

If you have taken a big loan, then due to this also your CIBIL score gets affected (loan effects on CIBIL score). Because of this, it is seen that you already have a lot of debt, which is yet to be repaid. In such a situation, if the bank gives you more loans, then you may not be able to repay this loan. Usually, this happens only after taking a home loan.

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