Top Reasons for a Low CIBIL Score and How to Raise It

A low CIBIL score makes it difficult to get a loan at an affordable rate. Without a good credit score, it becomes difficult to get loan approval. Having said that, it proves how important a good credit score is for financial independence. Borrowing is a vital way to arrange instant funds for needs and emergencies. If you do not have a good online credit score, you are not able to enjoy the instant borrowing experience.

There are various financial and credit activities that damage the credit score. However, in contrast to that, there are activities that build credit too. If you are planning on a high-value loan, you need to improve your score. What are the top reasons for having a low credit score? How to improve it? How to check credit score? Let’s find out in a detailed manner.

The most common causes of a low credit score

●        Poor repayment history: Repayment history is an important factor in determining credit score.If you do not have a clean track record of repayment, you will have a low credit score. Payment is one of those factors that are considered important.

●        Higher use of credit utilisation ratio: The credit utilisation ratio is the ratio between the total credit limit offered and the credit limit utilised by the individual. It is a bad credit habit to utilise 100% of the credit limit offered by financial institutions. When you do so, it becomes difficult for you to get a good credit score.

●        Multiple hard enquiries: Hard enquiries are usually run by various loan providers when you apply for multiple loan applications. At a single moment, if you apply for multiple loans, hard enquiries damage your credit score. This is one of the most common reasons why you have a low credit score. For Business Loan visit : business loan apply online.

●        Multiple CIBIL report errors and comments: Credit report errors and incorrect entries are frequently the cause of a low credit score.It is possible to get a low credit score even with good credit habits. This is one of the probable reasons.

●        Mismanagement of credit mix: A healthy credit score is dependent on credit mix. leads to credit score damage.

Boost your credit score

●        Pay your bills on time. Maintain a healthy loan repayment history with a clean track record.

●        Even if you don't use your credit cards, keep them open. The longer your credit history, the higher your credit score.

●        Do not keep any outstanding or overdue amounts pending on your bills and monthly installments.

●        Avoid applying for multiple loans within a short span of time.

Summing up

How to check your credit score?  Check your online credit score by visiting the official website of Clix Capital. You get an accurate online credit score instantly, completely free of charge.

Must Read : Six Obvious Reasons to Check Your Credit Score Regularly

Reasons Why Your Home Loan Application Getting Rejected

 

Getting a home loan application rejected means a significant part of your happiness goes away. The joy of having own home is undoubtedly the best thing for an individual. It is not just happiness, but financial stability and you get to secure your future with a home. A home is a property and probably the biggest investment or possession. However, a home loan is a high-value loan and probably this is why the number of rejections is high. Since the amount even exceeds crores, the eligibility screening is really strict. Any issue or matter of instability in finance, your home loan application is straightaway rejected. Find the probable causes why a home loan application can be rejected:

●     Forged documents: For a home loan, the documents are the most important aspect. The property and NOC papers from the property dealer or owner are strictly checked. If you forge any document or you are not able to provide any piece of document, your loan application gets rejected.

●     A low credit score: A low credit score, which is probably below 600 or 650 will not provide you with a home loan. Since it is a high-value loan the need for financial stability and good health is important. One needs to maintain a good credit score in order to get a home loan. This is one of the common reasons for home loan rejection.

●     Low income: It takes years for individuals to buy a home. Why so? This is because a home loan takes away a huge chunk of income because the EMI is always high. You need to have a good income in order to accommodate a home loan from your income. Therefore, if your income is not stable and good enough, the reason for the rejection of a home loan is simply this.

●     Property issues: If you are trying to buy a property that is not good, has a lot of legal matters, and negative influence, the banks will not offer you a loan as there will be a risk. A bank or an NBFC is always going to sponsor a property that has a reputed builder, a good location and everything else looks safe and sound.

●     Income stability: The source of income, be it employment or business should be stable. With an unstable source of income, getting a home loan will not be possible.

Wrapping up

Do you know the best way to get a home loan? One needs to maintain a good credit score and have a stable income. This makes it very easy for you to get a house repair loan or home loan from Clix Capital at the best rate of interest.

 

Must Read : Everything You Need to Know About Credit Scores

Have You Checked CIBIL Score for Personal Loan?

When you meet a crisis or any sort of financial void, you need a personal loan. A personal loan is one of the most flexible forms of solution that helps you to meet all kinds of expenses and emergencies. However, when you decide to take a personal loan you need to make sure that you keep your credit score on the right track. The credit score will help you get easy approval and disbursement with a low rate of interest. This means you can find the right loan to keep your needs fulfilled. A personal loan gets easier with a good credit score. You must do a free credit score check online from time to time.

How can you check your credit score?

A free credit score check option is now available on all digital financial platforms. This will help you get an instant and free credit score check. When you visit Clix Capital you will get the option on the website to find the credit score option. You need to input all the information and details like Pan Card and Aadhar card to start checking your credit score. Within a few seconds, you will get the credit score free of cost.

Why check my credit score?

A credit score check will help you stay updated on your credit score so that you can borrow. It is an eligibility criterion that is Checked by the loan provider in priority to make sure that the right borrowers are getting the loan. A good credit score will help you with various perks like instant approval, a low rate of interest, and a good amount of loan. When you check your credit score, you can also find out the errors to work on them.

What are the perks of getting a good credit score for a personal loan?

If you need a personal loan, you can enjoy it with a good credit score. When you have a credit score of more than 750 you will be able to enjoy various perks and benefits. Things like a low rate of interest and instant approval can help you with a smooth borrowing experience. You need to make sure that it helps you with the right borrowing needs. You can enjoy an online and instant personal loan when you have a good credit score. So, when you need an affordable loan you need to have a score that is more than 750.

Finishing up 

A free credit score is very important when you are taking a personal loan. With a free credit score check online, you can instantly get your credit score to improve or detect errors in the time to make improvements in the credit score.

Must Read : Everything You Need to Know About Credit Scores