Low CIBIL Score? Apply For Personal Loans With Bad CIBIL Credit Score
Suffering from Low CIBIL Scores ?? Well, every once in a life time we do experience financial crunches. Borrowing from a family member, a friend or credit cards becomes out of the questions. With low CIBIL score; opting for Gold loans or other secured loans may not be helping because you need immediate cash. Low CIBIL Score defaulters are fortunate to have a hand on instant cash by applying for personal loans.
What Does Low CIBIL Score Mean?
Credit Information Bureau (India) Limited – It is a credit score is based on a person’s entire credit and debt history; there are various factors that affect your CIBIL score which is :
- The repayment history – 35%
- The amount you owe to lenders – 30%
- Number of years of servicing debt – 15%
- Number and amount of recent loans taken or applied for – 10%
The Credit Mix – 10%
Personal Loans!!!! Listening to the word loan rings more bells than solving the trouble. For people suffering from bad credit, getting personal loan procedure is simple and quick. You don’t need to put any sort of collateral or security to get the loan. All you have to do is to follow some simple steps and help us understand your requirements. Although you’ll find that the interest rate is on higher side compared to usual rate of interest and at time you may find the disbursement amount is loan and the loan tenure is short.
Few reasons why people choose to prefer personal loan irrespective of low CIBIL score:
- Documents required are less
- No collateral needed
- Low annual income required
Major Reasons Why Your Personal Loan Is Not Approved For Low CIBIL Score
When Your Monthly Income Criteria Is Not Meeting
When the income of the loan applicant is lower than the minimum criteria decided by the bank then there is fair amount of possibility that it can get rejected. This is because the income helps banks in determining whether the financial situation is credit worthy or not.. Check out personal loan options from a variety of loan providers like HDFC Bank, ICICI bank, Loantap, Axis Bank, TATA Capital, Bajaj Finserv, etc.
Your Job Stability Plays An Important Role
If you have a temporary job or in a habit of switching the jobs it does impact your credit score. Your salary slips are verified along with the bank statement which justifies your bad credit score hence your personal loan gets rejected. Switching jobs is not healthy when it comes to maintaining your credit score.
Incorrect Or Insufficient Documents
While applying for a personal loan, if you attach false documents such as incorrect income or there are few important supporting documents missing then the chances of loan rejection increases. You will find a lot of website that offers you to check your CIBIL score. Also, these relay out the information of which all documents will be needed to get the personal loan.
CIBIL Defaulter List
There are many other reasons for not getting your personal loan approved, but the most common is when the loan applicant’s name is in the CIBIL defaulter list. This means that that individual has earlier defaulted the loan or credit card repayment or delayed the EMI or have too many payments balance which resulted in a low CIBIL score.
Such individuals are put into CIBIL defaulter list by credit institutions such as banks, financial institutions where you apply for the loan hence; their personal loan or any type of loan application gets rejected straightaway. Your CIBIL score means a lot when you are out getting personal loan. It shows whether you are credit worthy or not. And a low CIBIL score means you are likely to default payment in the future.
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