We all make mistakes in life. Due to financial negligence, might be a possibility you have made a mistake too. Imagine, you have overspent your savings and have opted for different loans. At one particular time, you have all the possible loan account running and nowhere to go. You explain this to your friend and he suggests you to go for a loan against property and asks you to consolidate all your debts and pay it off at one go. You like the idea and start the process to opt for a loan against property and get through to a lender who you are comfortable taking a loan from. You submit your application with all the necessary documents attached and wait for a positive confirmation. In the initial process you get a call from the bank and you are informed that the loan plea is been rejected and the reason for the same is that you have a low cibil score of 550. You start wondering, what can you do and start doing some research on credit score and how to enhance it. You get know that the credit score won’t appreciate overnight and it’s a lengthy process.
First of all, you need to understand what is a credit score and what are its ranges and how will it impact the decision of lender on giving you a credit line.
What is a cibil score and what is a good range of it?
A credit score is a graphical representation of how you are doing financially. A good credit score can not only help you with a quick loan, but will also help in many ways you cannot imagine. There are factors which contribute to your score and you will have to maintain a good score if you want to get a credit line in future. The score ranges from 300 to 850, 850 being the magic number where everything comes to you automatically. Anything below 600 is considered to be poor and you will have to struggle a lot for getting things sorted as far as financial product go.
So, the main question here is will you get a loan against property if you happen to have a score of 550?
The answer to this is a yes! You will get a loan for sure but you will have to go through a lot of pain and hassles, do not worry we will provide you a checklist here,
The very first thing you do is to do a thorough research on your report and then shop around for loans. Find a Non-banking financial corporation which will fund your loan against property and get your money credited in no time. You will be paying more interest rate as compared to market standards but it will solve your need of the hour.
Make your file strong
Even if you have a bad cibil score, you can still make your file strong by showing your employer reference, adding a co-borrower and so on. Just because this is one type of a secured loan where you will be keeping your property as collateral, there are chances that you will get a loan sanctioned with ease.
After the storm is settled, make sure to start saving and try getting the loan closed. If you make the same mistakes which you’ve made in the past, the chances are you may lose your property to the bank and this can be very depressing.
Maintaining a good credit score is never an easy task, you will go through a lot when it comes to maintaining it. The good part is that you can always start fresh and start your building journey from where you left.