Low CIBIL Score Loan: Friends, when you think of getting a loan from a bank, the first thing the bank does is check your CIBIL score. Those people whose CIBIL score is very weak cannot get loans. If you are also one of those people who has a bad credit score and you want to improve it, then today we will tell you about How to Get Loan If CIBIL Score is Bad? If you want to improve your CIBIL score then there are some things which you have to keep in your mind. First of all, you have to find out the reason behind the low civil score.
Low CIBIL Score Loan
To get the CIBIL report, you have to visit the authentic website and fill out the application form. However, nowadays you can download your credit report by paying a fee of up to Rs 500.Your credit score includes all the details related to your loans and credit cards. It includes all the information through which you have made bill payments or if any of your payments are outstanding on interest for a long time, your credit score can be affected due to such minor reasons.
CIBIL score is decreasing due to the bank’s mistake
All banks continuously send information related to your credit card or loan to CIBIL. However, sometimes your CIBIL score may also be affected due to bank error.The reason for this is that despite the bill payment we made, it still appears pending in your CIBIL report.In this situation, you can present your side by filling out the dispute form. If the bank is wrong in this situation, then the mistake in your civil score will be corrected within 30 days only.
CIBIL SCORE: why it is important for Indians?
A good credit score can decide whether your loan or credit card gets approved or rejected. Additionally, someone with a higher score may be offered a loan at a lower interest rate than someone with a higher score, so someone with a lower score may be able to get a loan at a higher interest rate than someone with a higher score. This is because a lender will want to move away from its deterrent and reduce the riskiness of its lending. With this thinking, a good score can ensure that you save money in the long term.
Credit bureau in India
A credit report is a document that is generated by credit bureaus, which contains all the information related to the credit history of the individual in public. Credit bureaus generate a credit score, which is a three-digit data set that typically ranges from 300 to 900.There are four credit bureaus in India, which include CIBIL, Equifax, Experian, and CRIF High Mark. Each of these bureaus creates reports for individuals, and although there may be slight variations in scoring, know that the reports and score summaries have the same elements.
The main causes of low CIBIL score
There are 5 main reasons why someone may have a low CIBIL score:
Bad payment record:Your payment record plays a key role in determining your CIBIL score. If you have not paid your loan EMIs/credit card bills on time, your score may go down. Having defaults on your credit report can negatively impact your credit score. It should be noted that if small amounts of loans remain outstanding for a long period of time, your credit score can suffer a lot.
Applying for new loans multiple times in a short period of time:If you apply multiple times for new loans or credit cards with different banks or credit institutions, this may increase the number of hard enquiries about you. This may reflect your particular situation and increase the risk of getting your loan application approved. Your application may lower your credit score.
Wrong information from credit bureau:Many times, your credit report may contain incorrect information, such as a loan you never took out, incorrect payment default information, and even delinquent transactions. By doing this your CIBIL score can fall to a great extent
If your CIBIL score is low you can take collateral loans
If you are not getting you can apply for the given loans. These loans mainly include gold loans, loans against property, and loans against securities. This type of loan is called a security loan.
Gold Loan: If you have a bad credit score, you can apply for a gold loan. If you repay the gold loan on time, the bank will improve your credit score significantly.
Loan against your property: You can take a loan against your property, for these kinds of loans you don’t need a very good credit score and it will improve your credit score.
Home Loan: You can get a home loan from many banks despite having a low CIBIL score, it will help you to increase your CIBIL score.