When it comes to getting faster funds without much fuss, many people turn to personal loans to cover their requirements. But many of them have to face personal loan rejection. It is because they apply without considering some vital factors. If you want your personal loan application status to become approved, then you can avoid it getting rejected. Read on! 1. Maintain a robust cibil score A personal loan is an unsecured facility, for which you don’t need to submit any collateral. And your creditworthiness is determined by your cibil score. If you have maintained it at around 750 or more, then your personal loan application status may get approved. Thus, always ensure to have a higher cibil score. You can do that by paying your active loan EMIs, credit card outstanding and other bills on time. 2. Repay your bills and EMIs on time Lenders don’t have issues in approving loan requests for such applicants who have a steady repayment history. You can avoid personal loan rejection by paying your loan EMIs, credit card bills and others on time. Any missed payment, defaults and late payments may affect your credit score. 3. Maintain a credit utilization below 30% Many credit card owners use their limits up to the maximum. But it may denote that you don’t have sufficient income, and are relying on credit cards for expenses. Such applicants may have to face personal loan rejection. The best thing would be maintaining your credit utilization below 30%. You can get it customized by your lender if you think you need to use more limits. Other than these aspects, having a consistent employment history may also help you avoid personal loan rejection. Thus, you can now work on your personal loan application by following the discussed aspects. This way, you can get the personal loan approval within issues. Additional Read: Best Possible Ways To Avoid Rejection Of Personal Loan Application
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |