Could a low CIBIL Score affect personal loan
Your CIBIL score is crucial to proving your creditworthiness to financial institutions like banks. Almost everyone is ready to avail of a personal loan for several reasons like education and automobile. While maintaining a perfect CIBIL score may not be possible for many, keeping a good CIBIL score is possible.
However, to avail of a personal loan, a good CIBIL score has to be maintained. Your CIBIL score directly represents how credible you regard finances. Your practices of borrowing and repayment primarily determine your CIBIl score. So, keep a good CIBIL score if you want a personal loan.
Implications of a low CIBIL score
When applying for a personal loan, one of the first factors banks will check is your credit score. The CIBIL score ranges between 300 and 900. Although it may not be possible to maintain a perfect 900 CIBIL score, it is recommended to keep your CIBIL score above 750. Once you complete your loan application and submit the same, your CIBIL score and credit report will be verified along with your past financial activities.
If your CIBIL score is meager, the bank or the lender may not consider your application for a personal loan and may immediately reject it. This makes it evident that your CIBIL score forms a first impression of you to the lender. If your CIBIL score is around the recommended level, your loan will be sanctioned once further details are verified.
How to check the CIBIL score by PAN card?
You can check the CIBIL score in many ways, the most common being the PAN card. Check your CIBIL score by PAN card by following these steps:
Step 1: Navigate to the official CIBIL site and click on the button showing “Get your CIBIL score.”
Step 2: Next, choose a subscription plan and enter the required details like your name, email address, ID number, address, mobile number, and others.
Step 3: Then, create your login password. Ensure not to use a frequently used password to maintain security.
Step 4: Enter your PAN card number and agree to the terms and conditions.
Step 5: Make the payment through any of the available banking methods.
Step 6: Now, authenticate your identity by entering the OTP received on your mobile number.
Step 7: Finally, enter the details and submit the form to check the CIBIL score.
Now that you understand the importance of your CIBIL score while applying for a personal loan maintain your score above 750. In addition, if your CIBIL score is meager, you can improve your score by paying your credit card bills and debt. This would further increase your chances of availing of a personal loan. You can understand more about credit scores on Finserv MARKETS. You can understand more about credit scores on Finserv MARKETS. You can understand more about credit scores on Finserv MARKETS.