CIBIL stands for the Credit Information Bureau (India) Ltd. This keeps track of your credit score. Your CIBIL score is verified by the authorities in the bank before issuing loans. It ensures your credibility. It tells the bank how well you can pay the loan back with interest. Here are some things you should know about CIBIL score.
The CIBIL score lies in between 300 to 900. Higher your score, more probable it is for the bank to consider giving you a loan. You can opt for different types of loans like personal loan, medical loan, business loan and home loan. If you have a good score (above 750) you can ask for the loans confidently. It indicates that you are a consistent and responsible person in the society.
How to get instant loans with high CIBIL score
Instant loan is not as simple as it seems. Sure, it does not require much processing and funds may reach you immediately. You can get an instant loan for following reasons
- Personal loan: when you have some tight expenses to cover.
- Medical loan: when there is an immediate requirement for health care and only if an insurance policy is not applicable
- Business loan: when there is a small financial need in your company, that could be solved within a given time frame
- Home loan: When you are re-modeling or re-furnishing your home for valid reasons.
- Loan Against Property: When you have to fund your any type of high expenses, may be for business growth, marriage or high return investment prospects.
Instant loans are sometimes given to people even with a bad CIBIL score. You have the upper hand in getting an instant loan, if you have high CIBIL record compared to the one who has low score.
Advantages of having a high CIBIL score
Having a record of CIBIL score based on credit and transactions has many advantages. One of the most supreme things about having a good CIBIL score is that you are provided with instant loan for various reasons. Instant loans do not require a track of credit. It takes some days to process by the lender. Showing your CIBIL score may make the lender sure about giving the money you ask for.
Most of the banks do not offer instant loans. Even if they did, rate of interest for such loans is usuriously high. Your excellent CIBIL score, ranging from 800 to 900 can cut you some slack.
Balance transfer and instant loans
How can your balance transfer affect your score and the possibility of getting instant loan? It is a very common myth that when you do balance transfer that your credit scores reduce. It is not always the case. You can enjoy instant loans with good credit score after waiting for some time after balance transfer. The time you have to wait is usually different from bank to bank and lender to lender. Some banks consider only your balance transfer to provide instant loan.
Conclusion
Always know what you are getting into when you apply for instant loans. There might be hidden loops unexplained by the lender to put you in trouble. Have your CIBIL score checked regularly by authorities and be aware and informed of what happens in your credit report.
