Imagine you’re all set to take on the world – from finally moving into your cosy apartment to launching that super cool startup idea you’ve been nurturing. But there’s a minor glitch: your bank account looks glum, and your savings play hide-and-seek.
This is where a personal loan comes into play. It could be your ticket to making those aspirations a reality! However, getting your loan approved is like passing a test – you need to prepare and be aware of the crucial factors that play a significant role in securing the loan. So, let’s dive into the three must-know factors that can affect your personal loan approval!
Mastering the 3 Pillars of Personal Loan Approval
1. Cracking the code of low CIBIL score
The CIBIL score is a three-digit number that holds the key to all your financial dreams! If your CIBIL score is dipping into the low territory, don’t hit the panic button just yet. There’s still hope! Lenders use this score to measure your creditworthiness, which might raise a few eyebrows if it’s low. But don’t worry, for there’s light at the end of the tunnel. There are ways to secure a Personal Loan for a Low CIBIL Score!
Here’s the scoop – you can consider lenders who offer personal loans for low CIBIL scores. These lenders understand that numbers sometimes tell the full story. They consider other factors, like your income stability and employment history, to determine your eligibility. So, don’t be disheartened; explore these specialised loan options that could be your saviour.
2. Improve CIBIL score
Yes, we know we said no magic, and we stick by it! But that doesn’t mean you can’t take charge of your CIBIL score and turn it around for the better. Improving your score requires effort and discipline, but it’s doable. Here are some practical steps to get you started:
- Pay your bills on time: Late payments can harm your CIBIL score in the long run. It’s always better to pay your EMIs on time. Set up reminders or automatic payments to ensure you never miss a due date.
- Keep credit utilisation in check: Using too much of your available credit can ring alarms. Aim to keep your credit utilisation below 30% to show you’re a responsible borrower.
- Maintain a healthy credit mix: A mix of credit types, like credit cards and loans, can boost your score. But don’t go overboard; manage your credit wisely.
- Regularly check your credit report: Mistakes happen, and sometimes they sneak into your credit report. Regularly check for errors and get them corrected to avoid any unfair impact on your score.
Improving your CIBIL score may take some time, but Rome wasn’t built in a day, right? Be patient, stay consistent, and you’ll see those digits increase.
3. Stability is the Key
Lenders like stability – it’s like their security blanket. They want to be sure that you’re a reliable borrower. To prove your stability, you must showcase two critical things: a steady income and a reliable employment history.
When you have a steady income, lenders breathe a sigh of relief. It gives them the confidence that you can handle the loan repayments without drowning in debt. So, if you’re considering a personal loan, ensure you have a reliable source of income.
Similarly, having a robust employment history works wonders. Lenders prefer borrowers who have worked with the same employer for an extended period. It indicates that you have job security and are less likely to default on your loan.
But what if you’re self-employed or a freelancer? No worries! You can still get that loan approved. Just ensure you have your financial documents to prove your income stability.
Conclusion
So there you have it – the three crucial factors that can sway the tides of your personal loan approval. Remember, a low CIBIL score isn’t the end of the world; several options are still available to secure a Personal Loan for Low CIBIL Score! Work on improving your score, show off your stability, and you’ll be well on your way to achieving your dreams.
And hey, did we miss mentioning the OneScore app earlier? Do check it out for checking your credit score for free and ways to improve it. It could be that helpful sidekick you need on your journey to financial awesomeness! Now go ahead, own that personal loan game, and conquer those dreams like the champion you are!
Photo by Jonathan Cooper on Unsplash (Free for commercial use)
