CREDIT SCORE 

SEVEN KEY ADVANTAGES OF HAVING A HIGH CREDIT SCORE

Published By MintGenie Team | 20 Mar, 2024
Lenders sometimes approve loans at the lowest interest rates and increase credit card limits due to a high credit score.
Here are some benefits of a high credit score:
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Loan Approval

Lenders prioritise borrowers with high credit scores, indicating lower default risk and increasing approval chances for loans, credit cards, and other credit forms.
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Bargaining Power

A high CIBIL score grants more negotiating leverage in loan terms like interest rates and repayment periods.
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Higher Credit Limits

Responsible credit behaviour reflected in a high credit score may result in lenders offering higher credit limits on cards and loans, enhancing financial flexibility and purchasing ability.
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Lower Interest Rates

Borrowers with high credit scores typically qualify for lower interest rates on loans and credit cards, leading to substantial interest savings over time.
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Faster Approval Process

Lenders expedite approval for high-score borrowers due to lower risk, ensuring quicker access to credit when needed.
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Better Financial Opportunities

A high CIBIL score unlocks access to premium financial products like exclusive reward credit cards, expanding financial opportunities beyond those available to lower-score individuals.
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Insurance Premiums

Insurance companies may factor credit scores into determining premiums, potentially leading to lower premiums for high-score individuals, particularly in types like car insurance, resulting in long-term cost savings.
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