In today’s world, there are a lot of factors which influences your daily activities and standard of living. Some are direct influencers and some are indirect. For some direct factors, you can be ready to face them but for other factors, you will not have any idea how they are influencing your living standards.
Take your credit score for an example, imagine you are applying for a home loan to buy your dream house and you are offered the best home loan interest rate by the bank as compared to other market standards. This offer was made available to you because you must have made all your payments on time and you must have ended up with a great cibil score.
On the other hand, if you have default your payments in the past, it will not only affect your credit score but also will affect you in many ways, financially and personally. So, what is a credit score exactly?
A credit score is a compilation of good and bad transactions you make financially. It is a three digit number which gives the lender a clear idea of your credit worthiness and if you are eligible for a loan. Generally, the higher your score, the better your chances to get a loan approved. To maintain a good credit history, you will have to maintain a good financial integrity and make all your payments on time.
Now you would ask yourself, by looking at it a credit score is only important if I am applying for a loan or a financial product. I do not have to worry so much of maintaining a good credit score. Even if I make all my payments on time, how is it beneficial for me?
A good cibil score will not only help you get a speedy financial product, but will also help you in many ways further, Let us see three ways how a good cibil score will matter otherwise,
While landing at your dream job
Yes, this is absolutely right! You must have heard about an employment check, a residential verification and background verification, this is a new norm which is included by reputed company as part of their selection criteria. If you are applying for a job and your designation demands a lot of financial attention with accounts, the company will conduct a cibil check to understand your payment patterns. The credit report will also give your future employer a clear idea on how you manage your funds and if you are worthy of handling finance related accounts. If you do not know your credit score while applying for a job, it is suggested to opt for a free cibil score to check your credit worthiness. This will help you to be prepared for what is about to come.
When you are looking for a place for rent
There are a lot clauses laid by the landlord when you try getting a rented place. Some of the common questions asked are if you are a bachelor? Are you a non-vegetarian? Etc. Did you happen to know, these days landlords also check your cibil report to see if you make all your payments on time. By having this information, the landlord will either deny you the property or else will demand for a higher deposit. This type of inquiry is counted as a soft one and will not affect your credit score. Next time you are denied a property for rent, understand your credit background verification is done.
While getting an insurance policy
This is the most surprising of all. You must be imagining, insurance companies call you to sell policies and you are the one who will be making the premium payments, then why would an insurance company check your credit report? The answer to this is, if you are making all your payments on time the insurance companies will offer you low premium prices. This will help you get maximum benefits of an insurance term with less premium rate.
Maintaining a good credit score is not only great, but will also help you n many other ways. Always make your payments on time
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