For security reasons, your session has been timed out. To continue, Please login.
CIBIL, which is the most common credit bureau, puts anyone with little credit history and people with a very high risk of default in the range of 300 to 400 credit score. However, there are chances your score may be less than 300 when you have no credit history. In this case, you may want to build one.
Anything between 400 when your credit score is between 600, you are considered moderately risky. The chances of getting a loan are low, but the terms of lending would not be very favourable to you.
If you are within the 700-750 score, your credit record is satisfactory and you will probably get a loan at competitive rates when compared to scores below. CIBIL says about 10% of all the new loans sanctioned fall within this band.
Credit scores of 750-799 are considered good and you will generally face very little difficulty in raising a loan. However, do keep in mind that credit score is not the only deciding factor in the disbursement of a loan, but one of the important ones. Finally, any credit score above 800 is considered excellent and Is generally reflective of someone with good control over his or her finances and a proven track record of clearing the dues. Lenders would rarely hesitate in lending to this class of borrowers.
There are other credit rating agencies like Experian that have a similar score range of 300-900 points, with 300 being the lowest and 900 being the highest. Equifax on the other hand scores individuals on a scale of 1 to 999, with 1 being the lowest and 999 being the highest. While each credit agency has its own formula and algorithm to reach your credit score, you would get an idea about where you stand if you get the score from just one agency.
Getting a personal loan with bad credit isn’t impossible, but it requires diligent research to find the most affordable loan possible. Here are a few steps to get a personal loan if you don’t have strong credit.
FICO calculates your credit score using five pieces of information:
If your finances fall short in one or more of these areas, your score will drop. For instance, having a history of late payments will have a huge impact on your score, since payment history contributes the most to your score. Things like bankruptcies, foreclosures, and high amounts of debt relative to your income could also result in a bad credit score.
If you happen to have a CIBIL score that is not good, then there is no reason to lose heart. There are things you can do to improve that score. Here are some tips that can help you improve your credit rating.
Categories of Credit Score:
Payment history (35% of score): Do you pay your bills on time, every month?
Amounts owed (30%): How much do you owe on your credit accounts, particularly relative to your credit limits or original loan balances?
Length of credit history (15%): This considers various time-related factors, such as the age of your individual accounts, the age of your oldest account, and the average age of all of your accounts.
New credit (10%): Newly opened credit accounts, as well as your recent applications for credit, are included in this category.
Credit mix (10%): Lenders want to see that you can be responsible with different types of credit, so having several different types of accounts (credit card, mortgage, auto loan, and so on) can boost your score.
FundsTiger can arrange loans from almost all the banks. You can apply for an attractive offer with the best possible rate of interest and terms for Personal Loan, Business Loan, Home Loan, and Car Refinance Loan.