Spend, Save and Invest Smartly
Banks simply hate to lend blindfolded. They like to have their facts right. Banks want to know as much as possible about you, before they sanction you a loan. You avail a loan from your bank, and the bank creates a credit information report (a detailed report on your loan repayments).Your credit information report is then sent to Cibil which then assigns a score between 300-900.Banks have real time data on your loan repayment abilities and can easily decide whether to sanction your loan or not. These are the benefits of a good cibil score.
Having a good Cibil score means your loans are easily sanctioned. Home loan (a loan which enables you to have a roof over your head), is critical to your needs. A good cibil score ensures that you can easily avail a home loan. There is better news…You can negotiate with the bank for those interest rates and better still they listen to you. Yes….A good Cibil score means you get your home loans at a lower interest rate from your bank.
Getting a job is hard these days. You aspire to work in a good reputed bank. But here’s a surprise. Many banks ask for your Cibil score/report before conducting the interview rounds. You might not get that dream bank job if your cibil score is bad. Companies believe that if you cannot make your loan repayments in time you are highly irresponsible. This is definitely a trait Companies are not looking for. You are stuck in the debt trap (a vicious cycle of borrowing and borrowing)…loans over loans. How would you concentrate on your job? Your mind would be focused only on repaying those loans and you would not concentrate on doing your job. This would affect your productivity in office.
Finally it’s time for your marriage…What role can Cibil play here. Financial compatibility with your spouse is very important otherwise a divorce could be on the cards. It’s not how much you earn but how much you save that makes you rich or poor.If your would be spouse works for a reputed Company and earns a hefty salary package, and blows all the money on clothes and electronic gadgets, he/she would would soon be in debt. You need to check if your soon to be spouse is neck deep in debt (lots of loans and borrowings on credit cards).Your would be spouse has lots of credit cards and borrows heavily on them. Credit cards charge high interest on the borrowed amounts if not repayed in time.Too many personal loans (unsecured with no collateral) means high interest repayments.This means your would be spouse is in a financial mess and this shows up in the Cibil score.
Financial indiscipline is a habit cultivated over a number of years. It does not disappear overnight. You would have to bear your soon to be spouse’s liabilities (repay the loans and credit card borrowing) and worse you might find yourself in your spouse’s situation. The dreaded debt trap. Before marriage check your would be spouse’s cibil score and make a decision on financial compatibility. Not checking this could be a costly mistake leading to a divorce.So maintain a good cibil score and enjoy the benefits of a good cibil score.