September 27, 2023

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Can A Low CIBIL Score Affect My Personal Approval 

Individuals very often take personal for various purposes. Different criteria are applied to deem an individual eligible for a personal . This may depend on the amount of the or even the lender. However, one of the most crucial factors that are looked upon in the initial stages is the individual’s CIBIL score. This article will guide you through understanding what a CIBIL score is, why it is crucial to free CIBIL score check with a CIBIL score app, and how it affects a personal approval. 

CIBIL Score 

 CIBIL stands for Credit information bureau India Limited and refers to an organization that maintains every individual and company’s credit or CIBIL score. You can free CIBIL score check using the CIBIL score app or website. This information is taken from banks and contains all financial information regarding your credit card, payments, etc. You can gain a CIBIL score anywhere between 300 and 900, and you can free CIBIL score check as frequently as you like. However, it is mandatory to have a free CIBIL score check at least once a year. 

How A CIBIL score Affects Personal Approval 

Being one of the factors that affect the approval of your personal , a free CIBIL score check must be conducted so you can keep track of your credit score. The CIBIL score app provides all your credit score information in the form of a report once you enter the right credentials and login details. Here is how a CIBIL score affects personal  approval:

  • Financial history 

A low CIBIL score means issues in your financial history. You may have incomplete or delayed payments, which can be recorded and reviewed on your CIBIL score data card. If your CIBIL score is low, the lender automatically assumes that you may have a weak or insecure financial history, which may affect the chances of your getting approved. 

  • Assessment 

A CIBIL score can also determine your income, expenses, and many other factors to a certain extent. A free CIBIL score check shows you all the payments you have made, the expense, the income, the limit, the balance, and so on. This allows the lender to assess your financial planning and actions, which will further help decide whether your personal should be approved. In simple terms, a CIBIL score is a report card for your financial standings giving lenders the overall idea of whether you can handle their money. Therefore, a regular free CIBIL score check is recommended.   

  • Personal risk factor 

Everyone knows that personal are for personal use, and there is no fixed cause. Moreover, there is nothing attached to personal like home and other. Therefore, interest rates are higher for these . Having a low CIBIL score adds to the insecurity of the idea of a personal , given your financial standings. With nothing concrete to hold back and high-interest rates, having a low CIBIL score brings the lender to think whether you would be able to repay the on time with the right interest affecting their trust and thereby the chances of approval for the personal . 

Conclusion

A low CIBIL score can be anything below 700. You can check your CIBIL score using the CIBIL score app whenever you wish. Moreover, the CIBIL score app and website allow you to free CIBIL score check and get the report so you can stay updated and track the status of your credit score and improvise on the same. Get the CIBIL score app now and run your checks frequently.