Credit score is one of the most essential factors that banks and financial service companies specially check before approving personal loans. It is always beneficial to have a good credit score. This may approve the loan quickly and increases the chances of getting more loan amount at low interest rates. Even if your salary is low or you do not meet some of the conditions of lender, then a good score can be useful for you.
Credit score indicates your ability to repay the debt on time and financial discipline. However, every bank’s score can be its own way of checking. Let us know how easy it can be to take a personal loan on 710 credit score.
What is a credit score?
Credit score is a number of three digits, which reflects your ability to repay the loan on time. This score is between 300 and 900. The higher this score, the more you will trust your financial profile. There are four Credit Information Bureau in India, they release these scores, which play an important role in loan approval.
Are it easy to take personal loans on a credit score of 710?
If your credit score is 710, then you will not have much difficulty in getting a personal loan because this score comes in the “good” category.
Moneycontrol has a partnership with 8 lenders. With these lenders, you can get an instant loan of up to Rs 50 lakh through 100% digital process. It has three easy steps – fill the details, complete the KYC and set the EMI Tenure. Interest rates on this personal loan start only 10.5% annually, which depends on your employment situation.
If seen from the perspective of banks and NBFCs, the score of 710 comes in a risk-free zone, that is, it tells that you have paid your earlier loans on time and without any problems.
In the scoring model of CIBIL, 650 to 749 is considered a “good score” and a score of 710 comes in this range. However, this national average score is slightly lower than ‘715’, so maybe you do not get the least interest rate, but this interest rate will not be too much. With this score, you can easily get many financial products like personal loan and credit cards.
How to increase credit score?
The 710 credit score is definitely good, but it is slightly less than the National Average Score and it can prove to be very beneficial to improve it. Here we are telling some tips, so that you can improve it:
- Pay on time: Late payment causes the score to deteriorate. Whether it is a credit card or an EMI of a loan, pay on time.
- Check credit score: Keep checking your credit score from time to time. The score can be reduced by seeing the score repeatedly, but it is necessary to check it on regular basis.
- Keep credit utilization low: Keeping the credit utilization low can increase the score. Use your available credit only up to 30%.
- Keep the number of loan applications low: If you have a lot of credit, then convert it into one. This will increase your credit score to a great extent. Actually, the score can fall from a lot of loan application, so apply according to the need.
Benefits of good credit score
- If your credit score is good, then the chances of getting an instant loan increase. The higher your CIBIL score, the sooner you can get a loan.
- Through a good credit score, you can do the terms of the loan in your favor. For example, if your score is above 700, you can get a loan at a low interest rate, which can reduce your EMI. This makes it easier to repay the loan.
- Due to high score, you also increase the chances of getting more loan amount, because banks trust such people more.
- If your credit score is good and you already have an account in a bank, then you can also get pre-upward loans and special offers.
However, if you do not pay on time by taking a personal loan on 710 scores, then your score can fall below the 649 bracket, which can spoil your credit health. Therefore, repay the loan eMIS on time and keep trying to improve your score.
conclusion
Summary
Learn easy ways to get personal loans on 710 credit score, as well as effective tips to improve the score.
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50 lakhs
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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.