Good Credit Score But Still Rejected? Don't Worry; know More To Change Positively!

Nowadays, credit scores are popular, and everyone is talking about how they take them. Also, many banks provide a print of credit scores on the monthly credit card statements. However, Buddy Score is an excellent option for credit scores because individuals can get it free here. Buddy Score is a feature included by Buddy Loan. It is one of the most trustable loan aggregating companies in India. If you have a good credit score but still rejected for a loan, thus know more about a few reasons that will reject your credit scores and try to make the necessary changes.

Reasons For Rejection Of Personal Loans

• What Credit Scores In Particular?

I hear many people saying they have taken out credit scores. But there are many kinds of credit scores, so before you apply to take credit score, know why you'll need it. However, I suggest taking Buddy Score, an Experian score, to avail of personal loans. It is the most accurate and free-of-cost report in India.

• Minimum Income And A Job

Most lenders see income proof and credit scores when you apply for a loan. However, you have a sustainable income proof to show and a good salary profession. In that case, it is better to avail of personal loans—for example, Doctors, police officers, Engineering, and other good salary profiles like this good. A minimum income of more than 18,000 annually is better to avail of personal loans. Also, remember that a person's earnings must be more than the monthly repayments. The monthly repayments must only be 40%. Your repayments must not be more than 50% of your earnings.

• Debt Burden

Banks, NBFC (Non-Banking Financial Companies), and online personal loan lenders usually check on each individual's debts and bankruptcy. So these lenders use a debt burden calculator tool to check up on each lender's debts, on-time payments, and holding debt for a long time. So they will track all the history and verify if a person having such a bad record might face rejection. Thus always try to keep your repayments on time and minimum.

• Holding On Too Many Credit Accounts

Having many credit card accounts or many loans will most likely reject you of a new loan. Also, individuals need to maintain a good record with good financial behavior to get recent loan approval. If you have too many to handle, it's always a problem for individuals. If your credits are higher than your earnings, it's always a problem for individuals. So try to take fewer loans and repay on time so that you will avoid falling into problems.

Thus these are some of the reasons, now that you know them. Try to revert your situation. Help yourself with a better financial plan and budgeting and make life hassle-free.

The Bottom Line:

If you have a good score, it's not enough; you need to have good credit history records to get personal loans. So keep your credit history and reports clean. Build on good behavior and keep track of credit reports and scores thrice a year. Also, keep all the other factors good.