Getting approved for online loans with low credit score is a nightmare. Sometimes, your application might get rejected due to your credit history. If you have had a low CIBIL score & want to repair it, then you must know the options to improve and get approved for a personal loan you want. Why don’t we see what causes a serious drop in CIBIL Score and the ways to improve your CIBIL Score.
i. Multiple outstanding loan payments:
Lenders will always look into your financial history before approving your online loans. If you’ve low credit score with multiple outstanding payments or debts, your personal loan application will eventually get rejected.
ii. High Credit Usage:
If you’re using more than 75% of your credit limit, it’ll have a negative effect on your CIBIL Score. Make sure to keep a check on your spends and also be mindful in handling multiple loans at a time.
iii. Applying for personal loans even after getting rejected:
If you keep on applying for a loan even after getting rejected will not help your financial history. If you’ve applied for a loan and got it rejected, the information is recorded in your CIBIL report. So, when you approach a new lender again for a new loan, they will see this information and your low score, will reject the application again.
i. Check your credit report
Checking credit report will inform where your cibil score is going down and how it’s affecting your CIBIL score. Moreover, examining your CIBIL score periodically helps you see the information feeded in it, thus giving you a possibility to fix your low cibil score. It is vital to correct the mistakes committed while borrowing to improve your credit score. This will eventually benefit by getting easy approvals for all personal loans.
ii. Don’t delay or miss any payments:
Make sure you play your Loan EMIs or Credit Card bills on time, as this directly affects your CIBIL Score. Late Payments or missing your due dates will lower your credit score exponentially.
iii. Avoid applying for multiple loans at a time:
Do you have multiple loans? Then consolidate them. Having multiple loans at a time are too a prime cause for the droppings in your credit score. Try and clear all debts and take one loan to cover your emergencies.
iv. Limit the utilization of your credit card:
Using multiple loans and reaching the credit limit every time will also lower your CIBIL Score. Make sure that you’re not only paying the minimum due but also clearing the entire debt. This will help to improve your Credit score.
While it’s true that getting online loans with low credit score is tough, but it’s not irreparable. Following all the above-mentioned suggestions will reap results, but it’s important to know that improving credit score is not an overnight process. It will take at least a few months to see the improvement in your credit report.