The one who is applying for any type of loan and if he low CIBIL Score, then the chances of rejection is always high. The type of loan you are applying for, mainly depends upon your credit score history so low or bad CIBIL Score is a nightmare. There may be some cases when the person with poor credit score can fail to pay the loan amount in the future, which is why the applicant gets denied. Around 500 banks are the member of CIBIL and these member banks will have report of your poor Credit Score. Because of your poor CIBIL Score, most of the banks will deny you to give loan amount. So, if you are applying for a home loan, CIBIL Score is like a background check for you.
Have you ever considered, what factors actually impact your credit score? Below are some reasons for poor CIBIL Score:
- Your CIBIL Score is get affected when you do not pay loan installments on time, so always make all payments on time.
- Your delayed credit card payments history is also counted as negative.
- The hunger of applying for credit card or any type of loan multiple times could impact the CIBIL Score negatively.
- Credit card offers considerable amount of credit limit and if you have crossed this limit multiple times, it will contribute to low CIBIL Score.
- Cheque bounce can also reflect poorly on your CIBIL Score.
Avoiding these you can get any type of loan very easily. Along with these, here are some alternate methods that you can employ in case of a bad credit score:
Get Benefit of your Spouse’s Score if it is Good: If your partner’s CIBIL score is better, then it may help you a bit in getting any type of loan.
Check for the Sources who can Offer Loans in Bad Credit Score Condition: If you have bad credit score, then you can go for this option as today, there are several companies who offer loan to people with bad credit score. Though, chances are that they may offer loan at higher interest rate and it may burden your funding, but it is worth a try as you don’t have any other option.
Go for Collateral Loan: You can also get loan against collateral i.e. FD, gold, shares, property etc
Borrow from Friends or Family: At the end, if you are left with no other option, take help from your friends and family. It totally depends on the personal relationship you have with your loved ones. You need to build confidence on them that you will return money on time, else they will not lend any money to you.
Following these simple steps, you can improve your CIBIL score, so that you do not have to face any issue in getting loans at some point in the future.