Your Credit Information Bureau India Limited (CIBIL) score plays a crucial role in determining whether your loan application will be approved or rejected. CIBIL score, commonly known as credit score, determines your creditworthiness and your repayment capacity. Thus, the higher your credit score, the higher will be your chances of getting the loan application approved by the lending institution. Since your CIBIL is such a significant factor when it comes to loan approval, it is always recommended to check your CIBIL score prior to applying for any kind of loan. This will reduce the chances of rejection of your loan application. Since loan rejection can further damage your credit score, it becomes even more important to check your CIBIL score beforehand. There are various ways through which you can check your credit score. You can check your CIBIL score online by visiting the official CIBIL website, through SMS and by using your PAN card.
You can also receive a physical copy of your CIBIL report on your address or you can opt for an electronic copy via an email. It is to be noted that you can check your CIBIL score for free, once in a year by using your PAN card. Apart from PAN card, you can also make use of your passport or driving license to check your CIBIL score.
Now that you know the steps to check your CIBIL score, make sure that you check it before applying for a loan. Your loan eligibility is significantly impacted by your credit score. Therefore, if you have a poor credit score, you must work towards improving it by clearing outstanding dues, making timely repayments and decreasing your credit utilization ratio. A high credit score will not only increase your loan eligibility but also help you avail a higher loan amount at a comparatively lower interest rate. Moreover, a high credit score will also allow you to negotiate with the lender to obtain a loan with more favorable terms.
When you obtain your credit report, ensure that it is error-free. Any kind of error in your credit report can hamper your credit score, thereby affecting your loan eligibility. Thus, it is always recommended that you must pull your credit report and check for errors. If you spot any mistakes, you must dispute them with the credit bureau and ensure they are resolved. Disputes may arise in case of the CIBIL Score or CIBIL Rank. Incorrect details in a CIBIL Report or a Company Credit Report is also considered as dispute and can be resolved accordingly.
The easiest and the quickest way to resolve a dispute is by filling the online dispute resolution form on the credit agencies' official website. On submitting the form, you will receive a dispute ID.
Depending upon the type of dispute, the credit agency sends the correction report to the concerned lender for rectification.
In case the lender rejects the dispute, no changes are made in the CIBIL Report.
However, if the disputes are accepted by the lending institution, changes will be made in the CIBIL Report.
The entire process may take up to 30 days.
By following the above-mentioned steps, you can easily resolve your CIBIL disputes and improve your credit score as well as loan eligibility.
Your credit report gives the lending institutions a clear idea about your repayment history and spending habits. If you have a clear repayment history, lenders may consider you a responsible and low-risk applicant. This, in turn, would increase your chances of loan approval. On the other hand, if you have defaulted on a loan previously, lenders may consider you a high-risk borrower and this would hamper your loan eligibility significantly. Thus, if your name is in the defaulters' list, you must take appropriate measures to ensure that your name is removed from it. By following the below-mentioned steps, you can successfully remove your name from the defaulters' list and boost your loan eligibility:
Check your credit score and clear all the outstanding dues.
Take a No Due Certificate from the respective lender and submit the same to the credit bureau.
Ask the credit bureau to remove your name from the defaulters' list.
To maintain your credit score intact, make sure that you never default on your loans and pay all the monthly installments on time. It is important that you are regular with your EMI payments. This is because many lenders charge late payment penalties to borrowers who fail to pay their EMIs on time. Before you avail a loan, make sure that you check all the charges, such as the interest rate, processing fees, late payment penalties, etc. levied by the financial institution. This will help you avoid any kind of inconvenience in the later stage. You must compare various loan offers provided by different financial institutions before making the final decision. This will help you avail a loan that best suits your needs.
Personal Loan available at Finserv MARKETS come with competitive interest rate of 18% p.a. A high credit score can help you avail loan at a competive interest rate. Personal loan available at Finserv MARKETS also come with other attractive features such as easy application, minimal documentation, instant approval and quick disbursal of the loan amount. You can easily avail a loan amount of up to 25 lakhs with a repayment tenure of 12-60 months. Moreover, you can also customize your loan according to your requirements. This has added to the increasing popularity of the credit products available at Finserv MARKETS. Lastly, it is advisable to read all the terms and conditions of your loan agreement carefully before signing it. In case of any query, you must consult a financial advisor to make a well-informed decision.
So you have checked your CIBIL Score, but unfortunately its below average then read this article on how you can avail a personal loan with low CIBIL Score.
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