Drawbacks of having a bad Credit Score

 Drawbacks of having a bad Credit Score

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Bad Credit may affect you financially. The following are some of the disadvantages of having a bad credit score :-

1. Loan or Credit Card Rejection

Banks/NBFCs see borrowers with poor credit as high risk, which means they will be less inclined to lend you the money you need.

2. High-Interest Rates

If you get approved for a loan, you will mostly end-up being stuck with a really high interest rate.

3. Starting business might be a Challenge

Many new businesses need the assistance of a bank loan to get started. With a low credit score, banks will be less likely to approve your loan application, even if your business idea is a great one.

4. High Insurance Premiums

Insurance companies believe in indirect relation between a bad CIBIL score and claims filed. Lower the CIBIL, higher is the ratio of claims made. Hence, insurance providers always charge higher premium on entities that have a bad CIBIL count to account for their risk.

5. Rental Issues

A person with a bad CIBIL score might also face a lot of problems while renting a property since the landlords usually run a creditworthiness check before renting out. In case of an extremely low score, the tenants may be asked for a hefty security deposit to cover for the risks of a bad score.

The following factors are to be considered in case to improve your Credit Score:-

  1. Make all overdue loan payments immediately.
  2. All Loan and Bill payments are to be made on or before the due date.
  3. Apply for Personal or Home Loan if you need one and pay all EMIs regularly.
  4. Monitor your credit score. It is available FREE once a year from Credit Bureaus like CIBIL, Experian, CRIF etc.

You can apply for an attractive offer with best possible Rate of Interest and Terms for Personal Loan, Business Loan, Home Loan and Car Refinance Loan.

FundsTiger is an Online Lending Marketplace where you can avail fast and easy Home, Business and Personal Loans via 40+ Banks and NBFCs at best possible rates. We will also help you to improve your Credit Score. We have dedicated Relationship Managers who assist you at every step of the process. We can also help you in Balance Transfers that will help you reduce your Interest Outgo

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