Cibil score is the first thing that a lender checks while processing your personal loan application. Why? It is because a personal loan is an unsecured loan, and no collaterals are required for it. It is provided on the basis of your creditworthiness. And the cibil score is the key parameter of it.
If you have a robust credit score of 750 and more, then your personal loan application status can go from ‘processed’ to ‘approved’ quickly. And it is where the importance of good cibil score in availing a personal loan does matter. Let’s know more in this post!
Personal loan approval depends on your creditworthiness. Factors like your credit score and repayment history are vital parts of it. If you keep these stable, then your personal loan application status can become ‘approved’.
1. Types of credits availed
The types of loans that you have availed also affect the credit score. And that’s why maintaining a mix of secured and unsecured credit matters. If you have managed it smartly, then your personal loan application status can get approved instantly.
2. The existing level of debt
Your debt to income ratio is one of the key aspects that affect your cibil score. If it is within 30-50%, then you may get the loan approval at a lower rate.
3. The repayment history
Timely payment of your past and ongoing loan EMIs and credit card outstanding is another vital aspect that computes the cibil score. If you have paid on time, then your personal loan application status will go to approval mode in no time.
Before applying for a personal loan, it is super vital to check these aspects that make or break your cibil score. By doing that, your personal loan application status, if applied, can emerge as ‘approved’ easily.
Additional Read: Apply For Personal Loan And Know The Importance Of Good Cibil Score
