CIBIL Score: If your CIBIL score or credit score is not good, then you may face a lot of trouble in getting a loan or your loan file can also be rejected. Yes, if your credit score is good then there is no problem in getting a loan.
You already know that you do not get a personal loan if you have a bad credit score. However, this is not true. There are many solutions for this, using which you can easily take a personal loan despite a bad credit score. Let us tell you that the credit score ranges from 300 to 900.
A credit score above 750 is considered better. A CIBIL score between 550 to 750 is considered good, while a CIBIL score below 550 is considered very bad. Therefore, people at this level are not able to get a loan.
Just keep these things in mind.
In case of a bad credit score (CIBIL Score Tips), the loan can be obtained with the help of a co-signer or guarantor. If you apply with the help of a co-signer, the bank will look at your credit score. Similarly, in the case of a guarantor, the bank's confidence will increase that you will not default on loan payments.
In case of a bad credit score, a personal loan can also be taken by mortgaging property. This is just like a guarantor. In this, instead of 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.
In case of a bad credit score, approval of any kind of loan becomes difficult. However, if you ask for a personal loan of less amount, then you can get the loan. This reduces the risk of the lending institution to some extent because the loan amount decreases.
Many times, errors and mistakes in the credit report can lead to a poor credit score, which can affect your chances of getting a loan. Check your credit report online at least once a year. If you find any mistakes, report them.
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