CIBIL Score for Personal Loanby Mohit Saxena Apply and Get Instant Personal Loan Approval
the advancement in technology and the disruption of the digital lending space,
getting a personal loan has become easier than ever. But there are certain
criteria’s that you need to meet to successfully get a personal loan. Apart
from being a resident of India, falling in the age and income bracket, there are
other very important criteria that you need to fulfill. That is the CIBIL score. A
good CIBIL score is mandatory to get a personal loan although the exact score
required might be different for every bank.
checking your CIBIL Score important?
applying for personal loans, checking your credit rating or CIBIL Score is very
important. Because it is the first thing that your financial institution will
check before approving your loan application. When you check your credit score
yourself, it is known as a soft inquiry. This does not have any impact on your
credit score. But if the bank runs a check on your credit report, it is known
as a hard inquiry. This affects your credit score negatively. So, before you
apply to any bank for personal loans, you should always-
- Check your
- Check you're cibil score before applying
- Figure out
whether you are eligible for the loan or not
- Apply only if you
improve personal loan CIBIL Score
given are the best ways to quickly boost your credit score to get personal
your credit reports frequently to rectify the errors-
should always check your credit report and score regularly. Checking them is
important because it will help you to spot the errors. So, you can take timely
action and dispute those errors.
all your due payments on time-
should always pay your outstanding credit card bills and loan EMIs on time.
Even a single missed payment can have a huge impact on your credit rating which
can affect your eligibility for credit products in the future.
not max out your credit card limit-
to over-utilize your credit card limit. It is because overutilizing your credit
card limit increases your credit utilization which, in turn, lowers your credit
score. Ideally, you should keep your credit utilization ratio up to 30%.
Maintain your Debt to Income ratio-
consider many factors while checking your creditworthiness. Your debt to income
ratio (DTI) ratio is one of those important things. You must maintain the
amount of debt you have over your monthly income. This ratio should not exceed
40% at any time.
your credit card frequently-
own a credit card in your wallet, but you do not use it often. Try using it
more often to get additional benefits. Use your card for making purchases
online or paying your utility bills and earn cashback or rewards on it. This will
also help you build a credit record. Please note that debit card transactions
are not included in your credit score.
Personal loans are one of the best credit instruments to meet your instant financial needs. To improve your chances of getting a personal loan in the future and to secure a low rate of interest, you should have a good CIBIL score of 750 or above. You can try out the above-mentioned ways to boost your credit score before applying for personal loans.
Created on May 29th 2020 07:38. Viewed 1,004 times.