Taking a loan online depends on your credit profile or history, which is mainly determined by your credit score. A credit score of 700 for personal loans is usually considered good. So it should be assumed that we will get a quick loan on a credit score of 700? Although most of the lenders pay attention to people with credit scores of 700 or more, but it is very important to keep some things in mind while taking online personal loan.
Personal loan on 700 credit score
Credit score is a number of three digits, which tells how much you have paid your old debt or bill. In India, lenders give more attention to the CIBIL score, which gives them the idea of how capable you are to repay the loan. The credit score of 700 is considered good, but it cannot be called ‘best’. This means that you are a responsible boyor, but in the eyes of the lender you do not come in the top scores.
It is possible to get a loan on this score, but the bank and NBFC do not take the decision just by looking at the score. They also look at your loan type, income and expenses or financial discipline.
Will you get a personal loan on 700 score?
A loan can be found on a credit score of 700, but it will come with certain conditions. Some lenders consider it average score and may not get loans at the lowest interest rate or conditions. But if the rest of your financial profile is strong, then the possibility of getting a loan increases.
While taking a loan, factor like your income, existing loan and job stability play an important role.
If your credit score is 700, then you can get a loan at a slightly higher interest rate because the lender can keep you in the ‘medium risk’ category. To avoid this, you can increase the chances of approval by strengthening your application.
Need a personal loan on 700 score? Follow these methods
Apply for small amount: Choose an amount that you can pay comfortably. The lender takes more risk on the big amount, especially when your credit score is average.
Give proof of income: Through your salary slip, tax document and bank statement, prove that you can pay the loan with responsibility.
There is no mistake in the credit report: Check your credit report before applying. If there is any mistake in this, then take action immediately to improve it. Keep in mind that any mistake in the credit report can reduce the value of your credit score.
Explain the previous troubles with proof: If ever a job is gone or a medical emergency, which has affected the credit score, but now you are financially stable, then tell the lender with proof.
Apply with coal-applicant: If there is a doubt about the score or fear that the application alone may be rejected, then make a trusted person a co-application.
Compare lenders: The terms of every bank or NBFC may vary. Check many options, compare and then choose the right loan.
Through Moneycontrol, you can easily take 100% digital and instant personal loan of up to Rs 50 lakh. Interest rates here start at 10.5% annually and there are no hidden charges. Its process is also quite easy -fill the dit, complete KYC, set EMI and the loan will be transferred directly to your account.
Increase credit score before taking a loan
If you want to take a loan on good interest rates and conditions later, then it is necessary to increase the credit score. Here we are giving some easy suggestions:
Pay on time: Late payment causes the score to deteriorate. Whether it is a credit card or a loan EMI, pay on time.
Take less new credit: When you apply a new loan or card, there is a ‘hard inquiry’ on the report, which can reduce the score.
Keep Mix Credit: Do not take only one type of credit or loan. It is considered good to have different credit like credit card, personal loan or auto loan. This makes the lender confident that you can pay different credits with responsibility.
Do not close old accounts: Your credit history is known from the old account. The longer this history, the better your score is.
Credit report regular check: Keep checking your credit report regularly whether there is any mistake or disturbance. If there is a mistake, get it fixed immediately, so that your score can show your discipline correctly.
Overall, a credit score of 700 is considered good, but not ‘best’. Therefore, if you apply by preparing in advance, then the chances of getting the loan approve increases.
Through Moneycontrol, you can easily take 100% digital and instant personal loans up to Rs 50 lakh from 8 lenders. Along with this, money can be transferred directly to your bank account with no paper hassle and very low processing fees.
Summary
Is a credit score of 700 enough to take personal loan? Here we are telling what the lenders pay attention to, how can you make your application strong, and how can you easily get a loan of up to 50 lakh rupees through Moneycontrol.
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Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.