Taking a loan is a good option when a person needs to pay for significant expenses. For getting the loan, the most critical process is the approval of the loan application. Banks or NFBCs can reject the loan application if the individual has a poor credit history or cibil score. A credit score helps the bank and NBFCs to know if the individual will be able to repay the loan on time or not. They can assess the risk that is involved with giving the loan to a person. The range from 0 or -1 depicts no credit history. 551-649 shows a poor credit history. The credit score lying in 700-749 determines good credit history. Excellent credit history is shown by 750 and above credit history. A person who has a rating of -1 or 0 shows that he/she has never used the credit card or has never taken the loan. The individual can improve his/her credit score by paying the dues on time and using credit cards or using a personal loan. People can use credit cards more frequently, which results in higher bills. These higher bills sometimes can affect the individual’s credit score negatively. Therefore, it is better to take a short term personal loan.
Continue Reading : HOW CAN YOU IMPROVE YOUR CIBIL SCORE BY TAKING A SHORT TERM LOAN?
Credit score 