Drawbacks of having a bad Credit Score
Drawbacks of having a bad Credit Score 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...