Is the dream of a new car? First improve your 3-canon ‘report card’:

Cibil Score Car Loan: Nowadays everyone’s dream is. Traveling with family or going to office, car makes life easier. But giving 8-10 lakh rupees simultaneously is not a matter of everyone’s bus. In such a situation, the car loan helps us.

But sometimes it happens that despite having a good salary, the bank turns down the application of the loan and our heart breaks down. We keep wondering where the mistake happened? Often the answer to this ‘mistake’ is hidden in a three -digit digit, which is called CIBIL score.

You can also consider it your ‘credit report card’.

What is this CIBIL score?

In simple words, whenever you use a credit card or take a loan (eg eMI of the phone) and pay the bill on time, your credit record is good. CIBIL gives this record a score between 300 and 900.

This score tells the bank how reliable you are in repaying the loan. The higher the score, the better customers you will be in the bank’s eyes.

So how much should be ‘magical number’?

For car loan, this ‘magical number’ matters a lot:

Above 750 (superstar score): If your score is above 750, then understand that the bank will launch a red carpet for you. Not only your loan will be approved quickly, but you will also have every possibility of getting it at the lowest interest rate.

700 to 749 (good score): You can easily get a loan with this score. Just you cannot get a chance to negotiate more at the interest rate.

Below 700 (Dangerous Area): This is where problems start. The bank considers you a ‘risky’ customer, and either rejects your application or gives you a loan at a very high interest rate.

Let’s see how expensive this small number can be to you.

Suppose, you have taken a car loan of 8 lakh rupees for 7 years. This table will clarify the whole story:

Did you see the difference?
There is a difference of more than 1 lakh 18 thousand rupees in a good and bad cibil score! Only in interest. A good score not only reduces EMI, but also provides a lot of saving you.

Do not worry, improve your score in your hands.
If your CIBIL score is low, it is also possible to improve it:

Never avoid payment of your EMI or credit card bill.

Avoid finishing the entire limit of credit card. It is better not to use more than 30%.

Do not apply for repeated loans without any reason.

So the next time you go to the showroom of your dream car, then first see your ‘Financial Report Card’.