01-Jun-2018 written by : FSI-Team
There are a lot of instances where you may find yourself taking a bank loan. A bank loan can help you in many ways possible to make your life easy. Let's say for example you would like to purchase a house, you obviously know that you do not have enough funds to buy one. What do you do? You apply for a home loan which supplements the dream to own a place you can call home. Similarly, imagine you need urgent funds, you may think of applying for a personal loan which will help you manage your need of the hour.
Getting a loan is easy; this is what you see in different advertisements published by various banks and Non-banking companies. But is it that easy? When you actually step in the loan market you will face a lot of dilemmas in terms of loans and its procedures, the most important of all is your credit report. Your loan can be denied only for his particular reason that your cibil score is less.
A credit report is detailed information of how you have managed your debts. If you have any late payments and skipped any payments recently, etc. There are different credit bureaus that collect this information and produce it to lenders if and when needed. Also, the credit score can determine if you have the power to negotiate on the loan interest rates.
Companies and individuals that have accessed your credit report.
You can also find information on your report like; you have ever filed bankruptcy or pre-closed any account.
Now that you have understood what all goes into your credit report, let's see the main features of your report which is important for your speedy loan approvals,
This is one of the most important features when the lenders evaluate your report to determine if you are credit worthy. If you have a long history to make all your payments on time, you can get your loan sanctioned in no time. Similarly, with a bad credit score you cannot expect to get a loan and you will definitely end up on the loan defaulter list.
If you had hard times making regular payments to your existing lenders, you cannot expect the new lender to sanction you a loan just like that.
Credit usage is one of the factors which you have in hand while building your score or hurt it. The lender will consider giving you money only if your credit usage is less than what was sanctioned. It does not matter if your credit utilization is high, you can block less limit on your credit account by making all your payments on time.
The bank while lending you money evaluates your credit account tenure. This gives them a clear idea on how old your account is and if you have managed to keep it in a positive manner. If you have recently closed a credit account, you may face problems getting your loan sanctioned.
The lender will always see if you have multiple accounts on your report. This shows that you can manage multiple accounts with ease and you can take care of one more.
There are different criteria’s adhered by different lenders through different credit bureaus when you apply for a loan. The bottom line is, making sure you make all your payments on time and adhere all your finances, this will not only boost your loan application but will also help you with speedy approvals.