A good credit score can help you fulfill many of your financial dreams. As you know, a credit score is calculated based on your payment history, age of credit, number of credit accounts, amount of credit utilised, and the number of credit inquiries you have made in total.
If these factors combine to give a score above 700 (for all credit bureaus), your score is considered good. A score equal or above 750 can help you get the Airtel Axis credit card! This super saver card can earn you 25% cashback on bills and recharges, 10% each on food and lifestyle shopping, Rs. 500 worth Amazon e-voucher on your first transaction, and so much more.
We will answer your “Why maintain a good credit score?” question in detail further in the article.
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Benefits of a good credit score
As established above, your credit score is very significant for your financial journey. Here’s why.
Multiple loan offers
A good credit score is an indication of your creditworthiness. It implies that you can be trusted for timely payment of the loan and interest amounts. Therefore, a good credit score attracts loan offers from varied lenders. You will have the option to compare your choices and opt for a lucrative offer with benefits like low interest rates, foreclosure policies, etc.
Lower interest rate
If you have a good credit score, you can get a lower interest rate on the loan amount. It works for both personal loans and credit cards. In the case of a personal loan, you will be charged low interest rates on the principal amount. Similarly, your APR or Annual Percentage Rate for a credit card will be lower than the normal APR rate.
Negotiate a better limit
When it comes to credit cards, people often end up with very less credit limit. If you have maintained a good credit score and have utilised only 20-30% of your credit, you can ask your credit card issuer to increase your limit. A good credit score will help you build a strong case.
More lending options at better rates
A bad credit score can only get you limited lending options with high interest rates, whereas a good credit score can get you multiple loan offers from different institutions at lower rates. You can compare the interest rates and other factors to get the best possible offer.
If you have a poor credit score, the lender will always have reservations before lending the loan amount. Therefore, your loan application might take longer than usual. Extra background checks and a thorough study of your credit pattern will be considered before disbursing the loan amount. On the other hand, if you have a good credit score, the approval and disbursal processes are near-instant.
Therefore, it is highly recommended to take your credit score and due payments very seriously. You also need to check your credit score frequently to notice any changes.
You can easily check your credit score in 3 simple steps on the Airtel Thanks app.
How to check credit score on the Airtel Thanks app?
Follow the below steps for checking your credit score instantly:
- Download the Airtel Thanks app and open it.
- You will see a banner of ‘Check your credit score’ right on the home page of the app.
- Tap on the banner.
- You will be asked to fill a few details. Hit confirm or proceed to generate your detailed credit report with your score.
You can view the report and save it for future purposes.
Remember, most institutions in India prefer the CIBIL score to understand your financial health.If you are planning to apply for an Airtel Axis credit card, remember to keep a check on your CIBIL score. A good credit score can get your credit card application approved instantly.
Improve your CIBIL credit score by making timely payments and via optimum credit utilisation.