Credit Score: If your credit score is good then there is no problem in getting the loan. Credit score helps the bank or financial institution to evaluate the creditworthiness of the borrowers.
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Cibil Score : If your CIBIL score or credit score is not good and you are worried about taking a loan. You can easily avail a personal loan even with a bad credit score. Let us tell you that it is very important for your CIBIL score or credit score to be better for the loan. if your credit score If it is good then there is no problem in getting loan. Credit score helps the bank or financial institution to evaluate the creditworthiness of the borrowers.
You must be aware that personal loan is not available if you have a bad credit score. However, this is not correct. There are also many measures, using which you can easily take a personal loan in spite of a bad credit score. Explain that the credit score ranges from 300 to 900. A credit score above 750 is said to be better. A CIBIL score between 550 and 750 is considered good, while a CIBIL score below 550 is considered poor. That’s why people of this level are not able to get loan.
keep these things in mind
- With a bad credit score, a loan can be availed with the help of a co-signer or guarantor. On applying with the help of a co-signer, the bank will consider his credit score. Similarly, having a guarantor will increase the bank’s confidence that you will not default in loan repayments.
- In case of bad credit score, personal loan can also be taken by mortgaging the property. It is like a guarantor. In this, instead of a guarantor, you have to keep an asset with the bank, which gets attached to the loan. If the loan is not repaid, the bank can sell the mortgaged asset.
- Having a bad credit score makes it difficult to get any kind of loan approval. However, if you ask for a personal loan of a small amount, then the loan can be availed. This reduces the risk of the lending institution as the loan amount decreases.
- At times, errors and omissions in the credit report can lead to a bad credit score, which in turn affects your chances of getting a loan. Check your credit report online at least once a year. If there is any kind of mistake then report it.