Instant Personal Loan: Credit score is very important for personal loan, home loan or any other type of loan. Banks or NBFCs provide you loans only on the basis of your credit score. If your credit score is good, you can get a loan even without guarantor. Along with this, sometimes loan is also available at low interest rate. If your credit score is not good then banks or NBFCs may refuse to give you a loan.
Even if a loan is available, the interest rate may be high and the conditions may also be strict. If your credit score is 500 and you are thinking of taking a personal loan, then let us know how you can take a loan on a credit score of 500.
Can you get loan on 500 credit score?
Many times, due to not being able to repay the loan installment on time, the credit score can reach 500. Due to which it becomes almost impossible to get a loan. If your credit score is 500, it means that you did not repay the earlier loan on time. Besides this, you may have also defaulted many times. This shows your financial ability. Because of which the bank or NBFC may assume that you will not be able to repay the loan. However, this does not mean that you will not be able to get an instant personal loan with a CIBIL score of 500.
interest rate higher than required
If you have a credit score of 500, you will get many offers on loan, but the interest rates on these offers can be high. In some cases, you may also need a guarantor. In this way, your chances of getting a loan on your terms are slim to none. In such a situation, you will have to improve your credit score before applying for the loan. For this you have to pay all your outstanding bills on time.
What is credit score?
The interest rate on the loan mainly depends on your credit score. Credit score is a 3-digit number that reflects how you have managed your loan payments in the past. Credit scores range from 300 to 900, with a credit score above 750 considered good. Whereas a credit score of less than 650 is considered bad. A high credit score shows that you have paid your loan on time, while a low score indicates that you may have delayed payments or had trouble repaying the loan.
HDFC Bank: HDFC Bank service will not be available for 2 days, you will not be able to use Whatsapp and phone banking.