Making a big purchase, such as a car or a house, is a big deal. It is likely you will have to apply for a loan, which requires plenty of planning, starting with ensuring your credit score is strong enough. A score of 750 or above is considered ideal in order to get your loan approved faster and at a low-interest rate. Keep reading for more on why a healthy CIBIL score is a must for financing your big-ticket purchases.

What is a Good CIBIL Score in India?

You need to be sure you have a good CIBIL score if you plan to make a big-ticket purchase in India. As a general rule of thumb, a credit score of 700 or above is generally considered good for small personal loans. However, there is no one-size-fits-all CIBIL score. Depending on the type and cost of your purchase, the optimum CIBIL score to get a loan approved will change. For example, a good credit score range for a personal loan may not be good enough for a home loan.

Five Big-Ticket Purchases Possible With a High CIBIL Score

1. Buying your dream car

A CIBIL score of over 750 will definitely help you shave off some costs from your dream car’s price tag. If your credit score is not that great, you might want to hold off before applying for a car loan and boost your credit score before you do. Use the Smart Score Planner on the OneScore app for suggestions on how to improve your credit score.

2. Unlock the door to low home loans

Buying a house often comes with a high financial burden. The housing market in India is ever-changing, and lenders decide rates based on various factors. Property size, location, and your credit history determine your housing interest rate. Therefore, it is recommended to have a credit score exceeding 750 to be eligible for lower interest rates.

3. Make your dream vacation come true

Don’t want to wait forever for your dream vacation? A personal loan offers you quick cash with no paperwork. Depending on the size of your loan, a fair to high CIBIL score of about 600 to 750 (or more) can get you quick loan approval at lower interest rates.

4. Setting your business plan in motion

Working towards your business plan requires you to juggle many responsibilities at once. Often, you will face situations where liquid money is required for short durations, such as advance payments to a client or while filing taxes. To make sure your business loan gets approved in times of need, make sure your credit score remains on the higher side.

5. Get access to quality education

Quality education is the gateway to opportunities, and a degree or diploma from a renowned institute can turn out to be one of the most important milestones in your life. Often, these institutes come with huge tuition fees, and for most, the first step towards securing this dream is applying for an education loan. In most cases, a credit score in the range of 650 to 750 will likely make you eligible for education loans. For bigger loans, a score of 750 or above is ideal.

So there you have it. Before you plan a big-ticket expense, make sure you maintain a high CIBIL score. Making big financial decisions with a strong credit score will allow you to keep the interest down and help you avoid debt in the future. Use free applications such as OneScore to keep an eye on your CIBIL score and be in a healthy financial situation.

FAQ

1. How can you increase your CIBIL score?

   Increasing your CIBIL score is a systematic process that requires a step-by-step approach. For a handy guide, read how to boost your credit score. Following are some smart tips that you can start following right now to build up your CIBIL score:

2. Check your credit card statement.

3. Make your credit card bill payments on time and in full.

4. Never max out your credit card limit.

5. Clear any old loans and maintain a good history of using credit

2.What is a good CIBIL score for a home loan?

Buying a house often comes with a large financial need and, in turn, a larger loan requirement. The larger your loan size gets, the greater your CIBIL score must be to get fast approval and low-interest rates. A CIBIL score of 750 and above is generally considered very strong, and can get you favourable loan terms and interest rates.

3.How can you check your CIBIL score?

You can check your CIBIL score by visiting several lender’s websites or applications. The OneScore app allows you to check your CIBIL score for free, along with several free features such as Smart Score Planner, Payment Tracker, and more, which keep you on track of your loan and credit cards.

4.What is the minimum CIBIL score required for an auto loan?

Depending on the size of your auto loan, a CIBIL score range of 700 & above should be good enough to get fast loan approvals and low-interest rates.