Your CIBIL score can have a significant impact on the interest rates you are offered for loans and credit cards. Lenders use your CIBIL score to assess your creditworthiness and the risk involved in lending to you. The higher your CIBIL score, the more creditworthy you are considered, and the lower the interest rates you are likely to be offered.
If you have a high CIBIL score, you can negotiate with lenders for lower interest rates on loans and credit cards. On the other hand, if you have a low CIBIL score, lenders may consider you a higher risk, and you may be offered higher interest rates or may be denied credit altogether.
For example, if you are applying for a home loan, a CIBIL score of 750 or above is generally considered good. A borrower with a good credit score may be offered a lower interest rate on the loan than a borrower with a lower score. Similarly, if you are applying for a credit card, a higher CIBIL score can get you better rewards and lower interest rates.
In summary, a good CIBIL score can help you get lower interest rates on loans and credit cards, while a low CIBIL score can result in higher interest rates or denial of credit. Maintaining a healthy credit score is essential to get access to better credit terms and financial products.
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