Credit Score Importance for Loans: How Does it Impact EMI and Interest Rates?
To take a personal or home loan, your CIBIL/Credit score must be strong enough. Every month you can track the score by understating the high or low score. (Pics: Freepik)
To apply for any loan, it is important to have a strong credit score with the documents.
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Your credit score can impact interest rates and EMI. As you have a higher credit score, you are eligible for lower interest rates by the bank.
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With a credit score below 650, the bank can consider you as a higher risk customer. Which will impact your loan application and EMI.
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A good credit score is proof that you have or are playing your EMIs on time.
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Thus, it is important for you to pay your dues on time for a strong financial profile. (Disclaimer: Given the input is on an information basis, please seek professional advice.)
