What is credit rating? Are you aware of it? A credit rating is a score allotted by different credit rating agencies in India that signifies your ability to manage and repay a loan. As per your types of credit rating, a lender assesses your creditworthiness and takes a loan approval decision. The loan approval and the offered rate of interest are determined by your CIBIL score range. A higher credit score means that your chances of approval are higher. Read on and know more! Credit score ranges at a glance and their meaning
2. Fair credit score – 580-669 If your CIBIL score ranges between 580 and 669, it means that your credit rating is fair. Your loan application chances hang in the balance. It may either be approved or rejected. If approved, a lender may charge you a higher rate of interest. 3. Good credit score – 670-749 A good credit score is between 670 and 749. You may get the loan approval faster and maybe at a lower interest rate. 4. Very good credit score – 750-799 Anyone having a very good credit score will have it ranging between 750 and 799. The chance of loan approval at an attractive rate is more for people having a robust credit rating. 5. Exceptional credit score – 800-900 An exceptional CIBIL score ranging from 800 and 900 is the one that has the brightest chances of enjoying the loan approval at the lowest possible interest rate. The credit rating of such individuals will be the highest. One should maintain a good to very good credit score and get the loan approval at a lower rate. Timely loan EMI repayments, a mix of credits and a lower debt to income ratio may help you keep a robust credit rating and lead to a better CIBIL score. Bajaj Finserv comes with pre-approved offers on personal loans, home loans, business loans and more. It is to ease off the processing of the loan. You can check your pre-approved loan offers today after sharing your basic details like your name and mobile number. Additional Read: Know Each And Everything About Your Credit Score
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |