Understanding Credit score: Relevance in loan approval and rejection, Errors and rectification.

Understanding Credit score: Relevance in loan approval and rejection, Errors and rectification.

What is a Credit Score?

A Credit Score is a three-digit numeric summary of your credit history. The value ranges between 300-900. It indicates the ‘probability of default’ of a borrower based on their credit history.

What role does a CIBIL score play in the loan application process?

Your CIBIL Score is one of the first checks that a lender does when they are evaluating your loan application. It’s important to know that nearly 90% of the loans are granted for individuals with score greater than 750. The higher your CIBIL Score, the higher are the chances of your loan application getting approved.

Why are applicants asked to contact CIBIL if their loan has been rejected?

One of the parameters considered by lenders when evaluating a loan application is the CIBIL Score. The loan would have been rejected because the CIBIL Score does not meet the lenders internal Credit policy criteria.

What are the types of disputes/errors that can there in the Credit report?

1. Error in personal information: Information such as name, date of birth, pan card, address, etc. might be wrong

2. Error in account information: Information such as account/loan type, status, date of last payment, current balance, amount overdue etc. might be wrong

3.Error in ownership: There might be accounts reflected in your report which does not belong to you.

4. Duplicate Account: There might be accounts which is reflecting more than once.

How can we help you?

  1. We can help you get your CIBIL report which will indicate your CIBIL Score, it will also indicate the areas that are adversely affecting the Credit Score
  1. We could help you understand the report and your credit history in detail. There are often instances where there are discrepancies/errors that may be reflecting against your name, which is worsening your credit score,
  1. We will also help you identify and correct them to improve your credit score.

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