Some times a Good credit score but not approved loan question arise. A Good credit score builds confidence in you! But when it comes to loan approval why your application gets rejected even with a good CIBIL Score. Lets focus on the reasons for loan rejection.
Are you financially disciplined? Are you paying the loan installments correctly what happens if loan emi is not paid in time? Are you eligible for a new loan? How do you know all this? Just look at your credit report to understand your financial habits.
Having a good credit score does not mean that you are eligible to take loans, it means that you are very disciplined in financial matters.
Lenders look at the CIBIL score when seeking a new loan. If your application is not rejected, it means that the bank/financial institution has confidence in you. Once this score has decreased/dropped try to increase it again, few precautions need to be taken before applying any loan.
Don't miss - pay credit card bill on time
There is no problem when loan installments and credit card bills are paid on time - Know paying minimum due credit card amount every time is correct or not. Especially during the festival, every credit card holder do a lot of shopping attracting to the discounts and grand sale.
It is a good idea taking a new loan for your house hold requirement or any other occasion. Try to meet all these in time. Know how to manage credit card spending for good credit score.
If delayed. Remember that availability of advance loans is not that easy. If you stick to the budget as much as possible, there will be no confusion of loans.
It is always better to ensure that installments do not exceed 40 percent of your income. Sufficient amount should be maintained in the bank for at least two months installments. Only then every month installments can be paid easily without any hassle.
Stick to your first credit card - Try to avoid taking more cards
No matter how many new credit cards you take, try to use the same card you took for the first time as much as possible. This will add value to your credit history. It is also useful to increase the credit score.
Is it bad to have too many loans! Number of loans is limited
Banks, credit card companies, non-banking financial institutions keep sending messages that they will give loan at low interest rate.
By clicking on these and submitting the basic details asked, you apply for the loan. Lenders will think that you are too eager to borrow. As a result, credit score and trust in you will decrease.
To improve financial health and overcome financial burden easily most of the card user move for taking loan on credit card to clear their financial burden, but they do not think or inquire about financial loss or benefits when it comes to taking credit card loan safe or not.
Bank loan guarantor responsibilities – Co-application
Have you signed a guaranty for a loan taken out by others? Anyone continuing to co-apply? You must also take responsibility to ensure that they pay the loan installments on time. If they don't pay it will be noted that affect on your credit score report. As a result the score will decrease. So, be careful while signing.
Are you financially disciplined if not learn how to be financial discipline? Are you paying the loan installments correctly what happens if loan emi is not paid in time? Are you eligible for a new loan how to be eligible for bank loan? How do you know all this? Just look at your credit report to understand your financial habits - lean how to improve credit score.
Even if you pay installments and bills on time, sometimes they may not be recorded correctly in your credit report. So, check your credit report at least once a year. Contact the banks and credit bureaus if there are any mistakes and get them corrected.
