why cibil score is important

The CIBIL score is important because it is the primary indicator of your creditworthiness to all financial institutions in India. This three-digit number, which ranges from 300 to 900, significantly influences your access to credit. A high score, typically 750 and above, leads to a higher probability of loan and credit card approval. Crucially, a good score also enables you to secure more favorable loan terms, such as lower interest rates, higher credit limits, and quicker application processing. Conversely, a low score can result in loan rejections or significantly higher rates.