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How to Leverage Your Strong Credit Score for Cheaper Loans
M
Moneycontrol•06-10-2026, 21:53
How to Leverage Your Strong Credit Score for Cheaper Loans
- •Check your credit report for errors before applying to prevent avoidable issues during the lender assessment.
- •Compare offers from multiple lenders rather than accepting the first approval to find the best actual rates and terms.
- •Review the Key Facts Statement for the annual percentage rate and all applicable fees to understand the true borrowing cost.
- •Avoid applying for multiple loans simultaneously, as frequent credit enquiries can negatively impact your score.
- •Use your strong credit profile to negotiate better terms, lower processing fees, and favourable repayment options.
Key Questions Answered
CIBIL currently provides one free CIBIL score and report every calendar year. Additionally, your own check of your credit report does not affect your credit score.
The RBI's Key Facts Statement framework requires lenders to disclose important loan information, including the annual percentage rate (APR) along with applicable fees and charges. This provides a clearer picture of the actual borrowing cost than just promotional interest rates alone.
Applying for multiple loans at the same time just to compare rates can result in multiple credit enquiries. Frequent applications within a short period can negatively affect your credit score, so it is better to research and approach a smaller number of suitable lenders.
