How To Get A Personal Loan With A Cibil Score Of 700?
A CIBIL score is an important factor when it comes to lending. Most lenders will ask for a high CIBIL score when you put in an application for a personal loan.
The question that arises now is can you apply for a personal loan with a low CIBIL score? What if your CIBIL score is 700? Will any lender approve your loan application?
The answer to all the above questions is yes. You can apply and avail of a personal loan with a CIBIL score of 700.
You can put in your instant loan application with Finnable. Finnable disburses personal loans against a CIBIL score through their instant personal loan app. It’s a simple 3-step process and it’s easy.
Cibil Score And Its Importance
All lenders talk about CIBIL scores. But why is it important to have a CIBIL score?
A CIBIL score is a 3-digit numeric representation of your credit history. CIBIL, which is a rating agency, analyzes your credit history and assigns you a score.
But why is it that lenders give it so much importance? That’s because a good credit score defines how creditworthy you are.
It gives the lender an instant idea of whether or not you will be able to repay your loans on time, with an extremely low chance of default or missed payments.
Factors Responsible For A Low Credit Score
No one factor is responsible for a low CIBIL score. You can check CIBIL Score report to find out where you have lost out on points:
- Start with your repayment history. If you have defaulted or just forgotten to pay your credit card bill or your EMI, it will reflect badly on your CIBIL score.
- How much credit are you utilizing currently? Ideally, you need to utilize at least 30%. Anything more than that would mean that you have less control over your financial situation.
- If you are making frequent inquiries about a new instant loan or applying for a credit card, this will be shown in your CIBIL score report.
- Though it may not sound like a big factor, the duration of your credit is also a factor responsible for your low CIBIL score. If you cannot successfully repay a personal loan in 4 years, it shows negatively on your credit score.
- You will need a healthy credit mix. This should include your credit card, secured loan as well as an unsecured loan.
Can you get a personal loan for a CIBIL score of 700?
If you need a personal loan for a Low CIBIL score of 700, there are a few steps that you need to take before applying:
- Start with how much money you need. Figure out the requirement first, and check if you can meet the expenses with your existing cash flow. If not, then it is viable to apply for a loan for a low CIBIL score.
- Find a lender that will let you avail an instant personal loan for a low CIBIL score. You need to remember that since you have a CIBIL score of 700, chances are high that the lender may charge you a higher interest rate on the personal loan. Also, avoid applying to multiple lenders with the hope that someone may approve of your loan application. This will be reflected negatively on your credit report.
- Get all your documents in place before you apply for the 700 CIBIL score loan. Even if one of the documents is missing or incorrect, your loan application will be rejected. Check the list of documents required before you apply.
How To Improve Your Cibil Score If It Is Just 700?
If you applied to get your CIBIL score report and find that you have a low score, what would you do? You can take the right steps to increase your CIBIL score:
- Clear all your pending dues on time. Avoid defaulting on not just loan payments but also on utility bills, credit card bills, or any other expense that has been incurred on credit.
- Make sure these payments are cleared on time. You can either set a reminder a few days before the due date or sign an e-mandate to pay your EMIs.
- Before you apply for the loan, remember to check your CIBIL score. This will give you an idea as to why you received a low CIBIL score of 700. You can even get it corrected if you find any discrepancy.
- Create a sound financial budget once you avail of a personal loan. If you have availed a personal loan with a high-interest rate, repay that before you apply for another loan.
Get An Instant Loan Without CIBIL Through Finnable
Though difficult and rare, you can avail of a personal loan for a CIBIL score of 700. This can be done through Finnable’s instant personal loan app as the process is easy and simple.
You can apply for a travel loan or a wedding loan through the personal loan app. If you are a first-time borrower, you can even apply for an instant loan without a CIBIL score. Before applying, use the personal loan EMI calculator to check the EMI that you will need to pay back. If it’s too high, choose a small loan amount or change the duration to something that would fit your budget.
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