Avoid Getting Rejected Inspite of Having Good Credit Score

A good credit score doesn’t mean you are guaranteed to get your application

approved. It might be shocking, but this is a circumstance that is highly possible to occur. Then how can you avoid getting into such a situation?

Before going deep into how to avoid such a situation, let’s understand what a credit score is and what a credit score constitutes—followed by tips to prevent a good credit score but still rejected? 

What Is a Credit Score?

A credit score is three – a digit numeric expression about credit history or

a summary of your credit history. A good credit score, i.e., A score of above 650, enables you to get rid of most of your problems that can be financial. Hence, you should check your credit score to know which range you fall in. You can use the Buddy Score website for a quick free credit score check. Buddy Score provides you quick evaluation of your credit report.

Credit Score Range	Remarks
300 – 500	Poor
500 – 650	Average
650 -750	Good
750 – 800	Excellent

What Makes a CIBIL Score?

A cibil score consist of the following factors and each have to play a major role in cibil score.

 

Payment History	30%
Credit Exposure	25%
Credit Type and Duration	25%
Other Factors	20%

Now that you know what a credit score is and the central element that makes an entire cibil score, you can read further to learn how to avoid getting your loan application rejected despite a good credit score.

Tips To Avoid Getting Rejected With A Good Credit Score.

Avoid Taking Multiple Loans-

Taking multiple loans irrespective of your regular payment of such loans, lenders do not give preference to such borrowers as you might be considered in the high-risk category. It is better to avoid taking multiple loans than to get rejected.

Past Inadequacy in Payment of Income Tax –

Banks and other lenders prefer loan applications for individuals who have consistently filed their income tax returns for at least two years before applying for such a loan. Lenders also evaluate borrowers’ creditworthiness based on their income tax returns. Hence, avoiding past inadequacy in payment of Income Tax filling will help you get your application accepted.

An Unhealthy Mix of Loans –

If your combination of loans is tilted more towards the unsecured loan category than secured loans, then lenders may reject your new loan application more than your loan application rejected even though your credit score is good. So, the right option for you would be to have the right mix of secured and unsecured loans to improve your chances of getting a new loan approved by lenders.

Frequent Inquiries –

If applying for multiple loans or the same loan with various lenders, consider yourself a frequent inquirer. In such a case, though you have a good credit score, still your loan application has a greater chance of not getting approved. Hence, as a borrower, you must avoid taking multiple loans with multiple lenders to ensure you can refrain from hard inquiries.

End Note

This article has discussed ways by which you can avoid being rejected with a good credit score. Hence, following the report should help your application approve without any obstacles.