CIBIL Score Roles in Loan Application Process

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CIBIL Score Roles in Loan Application Process

Praveen Sharma
Saturday, January 19, 2019

Need a loan? Have you checked your CIBIL score yet? It may be a real deal breaker! A lot of people are unaware of the fact that CIBIL score is extremely crucial in case of any kinds of loans and financial aids you may take from any institution. There are multiple aspects in case of a financial aid that depends on your creditworthiness. In most cases, the tenure, interest rates and the loan amount are decided by your credit score. So you see how crucial it is for you to maintain it properly. If due to some reason your credit score is going down you need to take the necessary steps on how to improve cibil score quickly before it’s too late. There are multiple companies available in the market that offers expert solutions for your cibil score issues and ensure that you get easy financial aids in the future too.

Knowing the Process

The entire process is done through various highly strategized plans and counseling sessions. So these people don’t only have an impact on your present financial situation but also guide you for the near future. This is mainly because without a proper CIBIL score you won’t be qualified for financial aids in the country. It doesn’t only establish your ability to pay a loan but also has an effect on the various aspects of a loan. This means that if you have an impressive score you can land with better interest rates or tenures than the others.

Continue Reading: Cibil score for loan approval

Now the Scores

If you are doing something like this for the first time then there are some things that you need to know to understand your creditworthiness while applying for a cibil loan. If you are aiming for something impressive then it has to be around 900. Closer it is to this number better are your chances of getting lucrative deals on your next loan. According to the market standards, the basic eligibility criteria is 750 so if you have something way below than that then it is high time you hire a professional service provider who can assist you to get it higher so that you can get better terms and rates on future loans.

If your score is 0, you have no reason to fret as it is common in case of those individuals whose credit history is available for only 6 months. This can happen if you have just started out with a cibil score so you need to work on it, and under the guidance of the experts, soon you will be getting better scores. This is also sometimes categorized as NA or not applicable while the ones scoring 1 is categorized as NH which stands for No History.

Applying for the Loan

Once you submit the application, the financial intuition will send it to the concerned personnel for verification and any score below 750 will lead to the rejection of your application. This is why today the CIBIL score repair services have become so relevant and crucial for anyone looking for the best cibil score for loan. There is also a chance of rejection if you have NA or NH which means you don’t have a long credit history which isn’t your fault. Only a reputed service provider can assist you with such issues and help you to overcome these problems and get easy financial aid right when you need it.

Negotiating with the Bank

Sometimes applicants with an NA or NH credit card cibil score negotiate with the bank for a loan. As they are not defaulters but lack the history to prove their creditworthiness, there have been instances of banks approving their loans. This may happen only if the EMI is low and the bank is convinced that you will be able to repay the amount without any default. So in case, you don’t have much credit history you can try negotiating with the respective authorities. Maybe you will not just get your loan approved but will also get better credit scores in the future!

Some Lesser Known Facts

Many people are unaware of the fact that being a guarantor of a defaulted loan can also be harmful to your credit score. As a guarantor, you are also responsible for the loan taken by the defaulter so it will be reported against you while calculating your cibil score. Well by now you probably have got a clear picture of the need and relevance of a cibil score for loan. So if you have any issues with your score contact your local cibil score service provider right now!

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