Having easy access to finance via various loans helps you meet urgent needs and fulfil your goals. All loans come with their eligibility criteria, a personal loan to pay for healthcare or a wedding, a home loan to become a homeowner or a business loan to boost your firm’s growth.
To both qualify for a loan and get it on competitive terms, your credit score is a number you can’t ignore. A credit score above 750 reflects good financial health and increases your chances of getting an affordable sanction on flexible terms.
Why does your credit score matter when you’re looking to take a loan
Your credit score showcases your creditworthiness and allows your lender to judge your application as a potential borrower. It is a summation of your credit history and how responsibly you have dealt with credit in the past. Your credit score reflects your credibility since it considers things like timely repayment of EMIs, your credit utilisation, your credit inquiries, and your existing debt. A good credit score shows your lender that you are financially stable and responsible with credit.
However, do keep in mind that your credit score is not the only criteria in the process of qualifying for a loan and getting approval on your application. Other factors such as your salary, city of residence, existing debt, employer, etc., also play a part.
While a good credit score is essential irrespective of the kind of financing you are looking to avail, here are the ideal scores that can help you get a better deal on your loan.
Ideal credit score to avail a personal loan
Your credit score is a significant factor determining your eligibility for a personal loan since it is a collateral-free loan. The minimum CIBIL score for a personal loan is between 720 and 750. Having this score means you are creditworthy, and lenders will approve your personal loan application quickly. They may also offer you your chosen loan amount at a nominal interest.
While you may still be able to get a personal loan with a credit score between 600 and 700, the lower your score, the lower your approved loan amount will be. A credit score below 600 is considered inadequate for personal loans in most cases.
Ideal credit score to avail a business loan
If you are applying for a collateral-free business loan, having a credit score of 700 or more is ideal. If you are applying for a secured business loan, your loan application may be approved with a lower credit score, say between 600 and 700 too. Both these scenarios are true when you are applying for a business loan as an individual, be it a self-employed professional such as a CA or engineer or doctor or self-employed non-professional such as a trader or manufacturer.
Additional Read:How to ensure your Business CIBIL score stays above 700
However, if you are applying for a business loan as an entity, be it a Partnership, Limited Liability Partnership, Private Limited, or a closely held limited company, your business credit score matters apart from your personal credit score. In such cases your CIBIL rank or Equifax business credit score is checked by the lender.
Ideal credit score for home loans
A home loan is a secured loan as the home you are purchasing acts as the collateral. Hence, it is possible to get a home loan even if your credit score is lower than 750. Some lenders sanction home loans if your credit score is around 550 or more.
It is important to remember that the lower your credit score is, lower the loan amount might be sanctioned on approval. That is why applying for a big loan amount when your credit score is low is not advisable. In some cases, lenders provide only 65% or less of the required loan amount if your credit score is low. It would be better to improve your credit score before applying for a home loan.
Additional Read: Where to check credit score
Even though you may get a loan even if your credit score is low, it is important to realise your credit score will always be considered for loan approval. This is why it is better to have a good credit score instead of risking rejection from a potential lender, which may lower your credit score further.
Bajaj Finserv offers pre-approved offers on a variety of loans. Just share your details and check out your pre-approved offer to avail the financing you need.
CIBIL stands for Credit Information Bureau India Limited. It is a credit information company engaged in the maintenance of records of all credit-related activities of individuals and organisations.
Score of 750 and higher is ideal while applying for a personal loan with Bajaj Finance Limited. Your credit score is very crucial as it reflects how risky or non-risky you are as a borrower.
While the minimum CIBIL Score required for the Bajaj Finserv Insta EMI Card is 720, you should aim to fortify your creditworthiness by aiming for a score of 750 or more. The general consensus among lenders is that a score within the range of 750–900 is excellent.
Your credit score is a significant factor determining your eligibility for a personal loan since it is a collateral-free loan. The minimum CIBIL score for a personal loan is between 720 and 750. Having this score means you are creditworthy, and lenders will approve your personal loan application quickly.
The Bajaj Finserv Insta EMI Card comes with a pre-approved credit limit of Rs.3 lakh, which is the maximum amount you can spend using the card. This credit limit is determined based on factors like your CIBIL score and if you have a regular source of income.
Yes, a 650 credit score is typically considered fair and you can qualify for loans, but the terms and interest rates may not be as favourable for you compared to those with higher scores.
Bajaj Finance has TTM P/E ratio 30.59 as compared to the sector P/E of 28.64.There are 31 analysts who have initiated coverage on Bajaj Finance. There are 14 analysts who have given it a strong buy rating & 9 analysts have given it a buy rating. 3 analysts have given the stock a sell rating.
Is a Bajaj Finserv loan safe? Yes, a Bajaj Finserv loan is a safe loan to borrow as Bajaj Finserv follows strict lending guidelines. Bajaj Finserv offers ample features through its secured and unsecured offerings and doesn't levy any hidden charges.
Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.
You can borrow $50,000 - $100,000+ with a 750 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
A bad credit loan is a loan that caters to borrowers with FICO scores below 580 — though some lenders consider credit scores into the low-600s bad. They are designed to serve as a funding option if you need a loan but have past credit issues.
The loan amount can range from Rs. 20,000 to Rs. 40 lakh which can be used to pay for all your big or small medical expenses. What is the minimum age required to be eligible for a personal loan? You can apply for the Bajaj Finserv Personal Loan if you are between the age range of 21 years to 80 years**.
With Bajaj Finserv privilege, you also receive attractive discounts and offers on EMI purchases, other payments, travel bookings, etc. These exclusive benefits are available when transacting with Bajaj Finserv partner stores.
This means they'll want to see your credit score, income level and DTI ratio. Requirements vary by lender, but most lenders require borrowers to have a credit score in the good to excellent range — meaning a score of at least 670.
To increase your chance of qualifying for a $10,000 unsecured loan, you should have a credit score of 600 or higher. Some lenders start their minimum credit score requirements at 600, however, there are some lenders that require a credit score in the high 600s or low 700s.
What credit score do you need for a $50,000 loan? In general, you need a credit score of 670 or higher to qualify for most personal loans, although some of our lenders (such as Upstart) will consider lower credit scores.
What credit score is needed to buy a motorcycle? There's no minimum credit score required to get a motorcycle loan — but the better your credit score, the lower the APR you will qualify for with less interest paid over the life of the loan.
Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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