Personal Loan For Cibil Defaulters In Bidhan Nagar
Understanding
the role and importance of credit score.
With
the lending scenario having become stringent over the past few years, banks and
other financial institutions when reviewing a loan application make sure they
have certain checks in place prior to taking a decision on whether to extend
credit or decline the request. This is because ultimately a lender takes a risk
by offering a loan, and from their perspective it becomes important to know how
likely the borrower is to default, or not repay the loan.
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Further,
the country’s apex bank, the Reserve Bank of India (RBI) has now made it
mandatory for all financial institutions to become members with the four credit
bureaus in India, namely CIBIL, Equifax, Experian and CRIF High Mark. It is
these credit information bureaus that generate credit reports. The stress on
credit information is further emphasised by the fact that a single player in
the market has been joined by others, clearly denoting a requirement for the
products and services offered by these institutions today.
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One
of the first and most important checks the lender does is to pull a copy of the
applicant’s credit report, which is a detailed analysis of their credit
behaviour, both past as well as present. Derived from this data is the credit
score, which is a three-digit numeric representation of the report, typically
ranging between 300 and 900.
Personal Loan For Low Cibil score In Bidhan Nagar
What
constitutes a credit score?
A
credit score takes into account several factors, each with varying weightage.
Home Loan For Cibil Defaulters
Length
of payment or credit history
Amounts
owed or outstanding
Mix
of both secured (such as home or auto loans) and unsecured (such as credit
cards or personal loans) products in your portfolio
Credit
limit utilisation on your credit card(s)
Multiple
enquiries or applications for fresh credit
Importance
of credit score for a lender
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The
score tells a lender about your creditworthiness, i.e. both the ability and
willingness of a borrower to repay a loan they have availed of. Higher the
score better are the chances of your application being reviewed favourably.
Once the loan is approved, a higher score is more likely to get you the loan at
the most competitive interest rates and other terms and conditions. A low score
on the other hand triggers a red flag for a lender, because someone with a
score below 500 is likely to be insolvent, or at the very least unable to
handle credit well. In such cases a lender would not want to extend fresh
credit facilities, because the chances of repayment look dim.
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What
you do need to keep in mind is that lenders do not review a credit score in
isolation and that they assess an application in totality and take into account
other factors such as income, expenses and any other fixed commitments you may
already have. That said though, a credit score still plays a very crucial role
in the process as it is the first things lenders take into account and it
therefore becomes important to maintain a good score and understand how to
increase credit score over the long run.
Personal Loan For Bad Credit Score In Bidhan Nagar
Indeed,
a loan for low CIBIL defaulters is available depending upon each lender, but
remember that it will never be at the terms that a loan for someone with a good
score would be at.
How
do you increase credit score?
It
is important to not just track your score, but make sure you take the right
steps to maintain it as well as going forward, increase the score as well. Here
is what you need to do:
Ensure
timely bill payment, and ideally in full
Avoid
applying for loans and credit cards unnecessarily, however tempting the offers
are
Have
a healthy mix of both secured and unsecured loan products
When
you close a loan, do check that your credit reports reflect the same, and that
there is no discrepancy
Importance
of CIBIL score for an individual
While
the CIBIL score is considered crucial for a lender, it also plays a significant
role in each of our financial lives. Here is what all you can expect to gain
out of regularly monitoring your score:
Home Loan For Cibil Defaulters In Bidhan Nagar
Helps
you keep track of your credit behaviour
Easier
to identify and rectify instances of identity theft
Inculcate
financial discipline in self
Steer
clear of debt trap, as you have a good understanding of your credit behaviour
Mortgage Loan
For Cibil Defaulters In Bidhan Nagar
Helps
you save money over the long term, when you get a loan or credit card at the
most competitive interest rate and other terms
In
conclusion
It
pays to be credit healthy, so ensure that your credit report is clean at all
times, and that the role and importance of the same is never undermined.
Bidhan Nagar
- Product Code: Personal Loan For Cibil Defaulters In Bidhan Nagar
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