Maintain A Good Score? These Banks Are Likely To Reward You

Maintaining a good score is crucial to obtaining Bank loans and those failing to maintain the optimum score are likely to be turned down.

Some banks, which have already linked Reserve Bank of India's external benchmark regime, look to utilize third-party credit score to offer interest rates on retail loans to potential buyers, reported the economic times.

 According to the report, at least three public sector banks (Bank of Baroda, Union Bank of India and Syndicate Bank ) have taken steps to segregate retail loans based on the third-party score.

Customers who have a high credit score (above 760 out of 900 ) will pay at least one percent less interest compared to people with a score of between 675 and 724. Customers with a credit score of 675 are unlikely to secure any loans.

 Why maintain a good credit score?

Customers should note that just having a good credit score at the time of securing a loan is not enough. As a report, maintaining a good credit score for the lifespan of a loan will be equally important.

 How to check credit scores?

There are multiple credit information companies including CIBIL, Equifax, Experian and CRIF Highmark which generate credit scores of individuals. These scores are based on data provided by the banks.

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