4 Tips to Avail a Personal Loan without Damaging Your CIBIL Score - Loan Trivia


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Saturday 3 November 2018

4 Tips to Avail a Personal Loan without Damaging Your CIBIL Score

A ‘CIBIL score above 750’ is something every individual would like to have whether he/she has plans to take a loan or not. The fact is, a good credit score puts you on the right side of the line: you can negotiate the interest rate owing to your good score, and expect the loan to get approved faster.

However, with time and a couple of loans, the credit score is likely to come down. Every credit request you make brings down your CIBIL ratings by a considerable percentage. In fact, if you apply for multiple loans, your score will come down by 10% and also highlight your credit hunger behavior which is not good for your credit health.

So, how can you apply for a personal loan without affecting your CIBIL score much? Read on to find out!

1) Apply with a lower DTI ratio: First and the foremost factor you must not neglect is DTI (Debt-to-income) ratio. It is the ratio of your income to your EMI liabilities which must not be higher than 43%.

2) Check your CIBIL score at least once a year: Check your CIBIL score at least once a year and keep an eye on the credit report. Look for wrong listings and get them corrected before taking a loan.

3) Borrow less than your eligibility: Check your loan eligibility and don’t apply for more than 40% of the available limit. You can apply for a higher amount as long as it’s necessary, but otherwise, avoid exceeding the stated limit.

4) Ensure your eligibility before applying: How can you do that? Check all the terms & conditions beforehand, arrange all the documents in advance and fill in the application form properly.

Additional Reading: 5 Easy Ways to Get a Personal Loan without Damaging your Credit Ratings

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