Active Stocks
Wed Apr 24 2024 15:59:54
  1. Tata Steel share price
  2. 165.50 2.73%
  1. NTPC share price
  2. 351.25 1.25%
  1. Power Grid Corporation Of India share price
  2. 290.00 1.75%
  1. Infosys share price
  2. 1,431.85 -0.68%
  1. ITC share price
  2. 428.85 -0.08%
Business News/ Money / Personal-finance/  Explained: Why banks look at your credit score when you take a loan
BackBack

Explained: Why banks look at your credit score when you take a loan

Interestingly, never taking a loan or not having a credit card can result in a low credit score, because there is no record to base it on and chances of the loan application getting rejected are higher

A CIBIL score above 750 is considered goodPremium
A CIBIL score above 750 is considered good

Your credit score is used by lenders to determine how trustworthy you are when it comes to repaying loans. It is a three digit number that is calculated based on your credit history, or your record of borrowing and repayment. Credit information companies like CIBIL calculate the score based on credit reports. For instance, a CIBIL score can range between 300 and 900, but any score above 750 is considered good.

If you have been regular with your loan repayments, your credit score is likely to be higher. Interestingly, never taking a loan or not having a credit card can result in a low credit score, because there is no record to base it on and chances of the loan application getting rejected are higher.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Nov 2018, 09:16 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App