If you are only concerned whether you can apply for a credit card and loan at the same time, then the answer is yes, you can! But the helpful information for you would what is the impact of doing so and inquiry into why do you want to do so?
Credit card and loan are both a form of credit or different ways of borrowing money. The only difference being the way of lending is different. One is through a card that has a limit to spend whereas the loan is the direct disbursal in to your account and you have to repay it with the interest. Credit card and loans both are offered basis the credit history of the borrower. If you apply both of them together means more inquiry on your borrowing purpose and a question mark as to why take a lot of debt that results in the lowering the credit score. There are high chances of rejection if there are several loans or a borrower is taking two loans simultaneously.Read More: Personal Loan Vs Credit Card Loan
Impact of applying a credit card and loan at the same time.
Any loan advances or credit application poses inquiry by the lender of the borrower’s credit score and history. Two credit applications means two inquiries and higher the number of inquiry means direct impact on your credit score. Too many credit requests create a sense of suspicion for the borrower and raises a doubt to the lender. If you plan to go for both credit card and loan, don’t put both the applications together, avail one of them, pay regular installments for few months and then apply for the second one. However, it is advisable not to take too much of debt, try to manage your expenses and stay free from too many credits.
What factors help decide on your loan application and disbursement?
Here are some of the factors considered for instant loan application approval and disbursal
- Is the borrower creditworthy?
Creditworthiness is of prime importance to any lender, therefore, it verifies the credit score, payment history, credit history in order to approve your loan application. Maintain your CIBIL
2. What is the current credit status?
The lender always investigates on the current credit or ongoing loans, the pending EMIs and the overall debt of the borrower. Higher the number of ongoing loans, more chances of rejection of the loan application.
3. Did you transfer your balance of previous loans?
Your balance transfers for outstanding loans reduce chances of getting further credits as it shows the difficulty or inability with which you repaid your loans.
4. How many inquiries have been raised for your loan application?
More number of inquiries on your loan application means direct impact on your creditworthiness and history and higher chances of rejection.
5. Which other factors affect your loan application?
Factors like age, income level are some of the other factors considered while approving a loan application.
There are several possibilities of getting loan advances and there isn’t anything wrong if you are in need. What is important is repayment plan and pattern. If you complete your loan honestly without any delays and defaults, there won’t ever be an obstacle for getting another one easily.