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How Much Loan Can I Get If My Credit Score Is Above 700?

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Kushi BL
How Much Loan Can I Get If My Credit Score Is Above 700?

How Much Loan Can I Get If My Credit Score Is Above 700?

A CIBIL Score between the range of 700 to 900 is considered a good credit score in India. Having a good CIBIL score offers a number of benefits to borrowers including low-interest rate, quicker approval, longer repayment period, higher loan amount and much more. Not only this, multiple lenders would be willing to approve your loan if you have a good credit score.

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When you don’t default, delay or skip paying EMIs, your credit score will improve. Loan aggregators meet the right bill with the borrower’s profile. They help ease your repayment process. Explore Buddy Loan in order to reap more benefit to increase your CIBIL score.

If you live in India and have a CIBIL score over 700, it should give you enough assurance that your loan application would easily be approved by most of the banks / NBFCs. No matter whether you are looking for a personal loan, home loan, car loan or any other kind of loan, a credit score above 700 would make your application likely to be approved.

How are Credit Scores Calculated?

  • There exist multiple methods to calculate the credit scores in the market. Different lenders and banks incorporate their own mathematical algorithms. Even though there exist these different methodologies, the factors that influence the calculations are pretty much similar.
  • A large chunk of these scoring models takes your payment history on various loans and credit cards into consideration. The type of accounts one possesses, the extent of revolving credit in regular use, the duration of one’s accounts staying open and the periodic application for fresh credit.

Factors Affecting Your Credit Score

While you might be unaware of it, certain actions might be contributing towards a lower credit score. Here are a few things to keep in mind:

 

  • Late Payment: Every delayed payment made after your due date is over will affect your credit score. Delaying payments makes you look irresponsible in terms of handling finances in the eyes of the lenders. Always try to make payments before the due date to maintain your credit score.
  • Over Utilizing Your Credit Limit: Most lenders set a credit limit of each customer depending on their income and debt-service ration. Utilizing more than 50 per cent of the credit limit regularly will impact your credit score as well. Try to keep your expenses in a range below 50 per cent of the credit limit.
  • Multiple Credit Applications: Applying for credits and loans with multiple lenders within a limited time span gives the lender the impression that you are desperate for money. It can also indicate that you may not be able to repay the loan on time. As a result, this action also tends to lower your credit score.

If you are thinking about getting a loan, it would be a good idea to first access your credit report and check whether you have a decent chance of getting it approved. If you find that your score is low, make efforts to first improve the score before applying for the loan.

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