It may seem hypothetical to get your processing fee waived off on your home loan or to be benefited from lower interest rates on your personal loan. But these situations can be possible if you have a good credit score and have excellent bargaining skills.
Banks will most certainly like to lend to those borrowers who have a good credit standing; which ensures them of the money back guarantee. So, you can take advantage of their need and put a good step down to get the interest rates reduced or processing fee waived off.
In the case of unsecured loans, banks could be even more accommodating. “Credit scores do form part of our internal rating mechanism that determines the loan sanction. For example, for existing credit card customers, we may offer a lower rate of interest on unsecured credit like a personal loan to a customer with a low-risk profile,” says Shyamal Saxena, general manager, retail banking products, Standard Chartered Bank.
Generally, these options are not marketed by banks heavily. But if you can obtain your credit record and make a good understanding of your score, then you are in a position to make discuss with the banks on certain terms and conditions. The factors that influence your credit score is the amount of credit you may be using , defaults, if any, the number of loan applications made, tenure of existing loans, credit mix, kind of credit facilities availed by you while calculating the credit score.
Having good bargaining skills can also help you. Approaching Bank A and explaining the favorable options provided by bank B, will definitely induce Bank A to reconsider the discounts and match up to your expectations.
Credit bureaus may soon start incorporating your electricity, phone and other utility bill payment record into your credit history. So, make sure that you pay your utility bills on time.
All these factors when incorporated can help you go a long way when it comes to acquiring your liabilities to finance your requirements.