What will happen if the Cibil score becomes '0'? Is this even possible? If you are going to take a loan, then you must know this first.

Often people do not pay attention to the Cibil score, but if the CIBIL score or credit score is low, then there is a problem in getting a loan. Many times a question often comes to people's mind can the CIBIL score also become zero? If yes, then what will happen if this happens? Let us know what is CIBIL score and what are the 5 losses you have to face due to its badness.

The CIBIL score is a three-digit number or say a score. Its range is from 300 to 900 points. The minimum CIBIL score of anyone is 300, it does not go below that. That is, the CIBIL score cannot be zero at all.

The CIBIL score shows your eligibility to take a loan. This number is decided on the basis of your old loan, credit card bill etc. If you keep paying all your loans and card bills, then your CIBIL score keeps improving, whereas if you default, then your CIBIL score keeps deteriorating.

If your CIBIL score is good, then it has many benefits. Every bank checks the CIBIL score of a person before giving a loan. In such a situation, you can get a loan easily and cheaply. You can even get a pre-approved loan offer many times and you can also get the facility of instant loan i.e. money coming into the account in a few minutes.

If the CIBIL score is bad, then you also have to bear its loss. You have to face problems in all the work related to the bank. Let us know the 5 disadvantages of a bad CIBIL score.

If your CIBIL score is bad, then you will have trouble getting a loan from any bank, small finance bank or NBFC. Banks fear that your CIBIL score is bad, that is, you can default.

Even if some banks agree to give you a loan despite a poor CIBIL score, they will charge a higher interest rate. Actually, they try to manage their risk. They think that even if the person defaults on the last few EMIs, the bank should not suffer a loss, so the interest rate is kept high.

Many times insurance companies can also ask for a higher premium from you when the CIBIL score is poor. Actually, in such a situation, insurance companies feel that you can make more claims, so they can ask for a higher premium. Many companies can even refuse to give insurance.

Just like a personal loan, you may also face problems in taking a home loan or car loan. You may even have to pay higher interest. There is also a problem in taking property on lease for business. The company can also ask you to mortgage something in exchange for giving you a loan.

The bank that will agree to give you a loan will also check the documents thoroughly before giving you the loan. Even if you apply for a gold loan or securities loan, there will be a thorough investigation. Even if you pledge something, the bank will look at you with suspicion and will do a thorough investigation. All this can take a lot of time, which can lead to a delay in getting your loan.