Improve Your Credit Score And Avoid Loan Rejection

A good credit score helps in quick approval of your loan application. Many people realize this only when then application gets rejected due to poor credit score. A credit score is an important factor in determining your loan eligibility. It helps lenders in assessing your creditworthiness, based on which they decide whether to advance you a loan or not.

It is important that you check your credit report regularly to know the chances of your loan application getting approved. Checking credit score will help you know about any errors in your report, you can report these errors to credit scoring agencies and get them rectified. If you are looking for a loan and your CIBIL score is low, then you can do the following to improve it: Never miss your loan EMI payments as this affects your CIBIL score. Set a reminder and pay all your credit card bills and EMIs on time. Avoid multiple loan application as it has a negative effect on your credit score. Do not opt for loan settlements as it severely affects your credit score. Keeping your credit card limit utilization low helps in improving the score. Using these tips you can improve your score. After your score improves you can apply with the bank of your choice.