A credit score as always known has been a support system for everyone seeking loans. So how does credit score benefit you? It helps you to get instant loans as and when needed. However, there’s still a large audience that needs to be educated about credit scores & its use at the time of loan application.
Undoubtedly, you’re informed when your loan application is turned down due to a low credit score. So, your credit score plays the first point of approval before a full-fledged ‘go-ahead’.
So what happens when you have a low credit score or you do not know about your credit score at all?
When you face rejection consciously or unconsciously due to your credit score, it means that you’ve been perceived as a risky customer. This way banks or even NBFCs refuse to lend money for certain tenure. A credit score particularly is to do with the repayment capacity of the previous loans and whether you’ve ever defaulted in the past. In fact, your previous history is always taken into consideration, i.e. type of loans and income levels.
How to get a personal loan when you have a low CIBIL Score?
This is when Home Credit can turn out your dream genie, lending out loans as per the need, not financial capacity.
So you know that whenever you need a personal loan, Home Credit provides the best in the industry. Though other lenders charge a high rate of interest we prefer to keep it affordable.
Some may think that a low credit score will get you rejected from all possible lending platforms, however, that’s not the case. It’s rare to find a reputed institution to lend you money with a low score. Very few will be interested to take a deep dive and take a risk. The newer Fintech platforms have come up with low-risk personal loans at reasonable rates of interest. Home Credit App is one of those reliable platforms to offer quick loans at instantaneity.
How to choose a lender when you have a low credit score?
It’s always better to know your lender and then rely upon them. Avoid nuisance created by those who intend to steal your data and never give out cash loans. They not only take advantage of your personal details but also do not provide money.
Home Credit India aims to get you quick money irrespective of your CIBIL score. However, it’s even better if you can work on your credit score for future propositions.
How to improve your credit score?
If you’re not eyeing a quick loan, then it’s good to build upon your credit score first. This will ensure that your application is not rejected whenever next you opt for a loan.
Highlighted below are a few tips to work on your credit score:
- If you have any pending amount on your credit card, then you can start paying off at the earliest. Pay your credit card bills on time. You shouldn’t think to pay the minimum to save some money.
- Limit your credit card spending & clear the pending dues firstly. And after that use the credit card only when urgently required.
- If you do not possess a credit card, then choose a secure card. Invest in fixed deposits and avail a moderately risky card. Use the card wisely by spending only up to the available credit limit. This will exponentially push up your credit score.
- Avoid applying for loans and facing consistent rejections. Too many applications can make you look desperate for credit and unnecessary spending.
Understand that if you’ve got a low credit score, even then companies exist to lend money. Just work gradually on your credit score. Build a score over and above 650 to have your application automatically approved!