A loan and that too a personal loan becomes the need of the most if not all. Often emergencies strike without letting us know in advance. Plus, new financial needs emerge as we move along in our life. All that calls for a personal loan as that can be given for a myriad of purposes such as marriage, education and contingency needs. But not all are able to get a loan approval due to several factors such as a poor CIBIL score.
CIBIL, as you would know, is one of the leading credit information companies existing in India. It provides scores to all those having a loan or credit card repayment track of at least 6 months. Let’s check out now the CIBIL score for personal loan required, how to know the score as well as harp on the ways to improve it.
How Much CIBIL Score Do You Need to Get an Approval for Personal Loan?
CIBIL score comes between 300-900 in India, of which anything around 750 and above is almost certain to lead an approval. The score, even if remains in the range of 700-750, can make the lender approve a personal loan application. However, lenders would be wary of providing loans to applicants with sub 700 score.
How to Check CIBIL Score?
You can check CIBIL score in a matter of a few minutes. All that you need to do is to visit the website of the credit bureau, create a login and check the score. For a login creation, you need to enter a few details such as PAN number, name, date of birth, residence address, credit card or loan account number, the expiry date of credit card or tenure of the loan, etc.
Once all these details are fed, CIBIL would run its verification and gives you the right to create a login only when your entries are found out to be genuine. You can then create login credentials by entering your user ID and password.
What to Do If The Score is Down?
After you get to know the score is far from being ideal, it would be time for you to look at the reasons that contributed to a downfall. You would find the reasons explained in CIBIL report. Taking a cue from the report, you can take the necessary measures to get the score raised to the desired level. You may have a poor score on account of the following –
- Payment default
- Rejections of multiple credit applications
- Too many credit enquiries
- Excessive credit utilization ratio
So, in case the payment default is a reason, you need to see your daily spend routine thoroughly to find out the loopholes in it so as to take necessary corrective actions to eliminate them. Getting the routine better would help you with the required savings for payment on time.
Maintaining the timely payment schedule on a regular basis would keep raising the score. Too many credit enquiries and multiple credit applications also drag the score down. So, there’s a case to exercise caution here to ensure the CIBIL Score for Personal Loan aspiration gets up all the time.