Does a High Credit Score Assure Personal Loan Approval?
Life goes through a lot of ups and downs and crises. It is important to have a strong hold over finances to manage and find a solution. A Personal or Medical Crisis Fund is always the best way to get out of any personal or medical crisis. However, with limited income, there is little room for enough savings or an adequate emergency fund. You can now find some sigh of relief and do justice to your emergencies with a personal loan from Clix Capital. A personal loan, being an unsecured form of loan, needs high eligibility criteria. However, a credit score is not the only eligibility criteria that a borrower needs to meet. So, having a very good score will not give you an assurance that you can get a personal loan without any difficulty. There are various aspects and factors that are considered important for getting a personal loan approved. If you have a good credit score, that makes you win one step of eligibility. Find out the other steps to eligibility.
Have all the documents: A personal loan will be approved only when you have all the documents in the right order. You need to have all the documents so that you can start the process of application. To know better, here are some of the documents that you would need:
Proof of Identity:-Passport/Driving License/Voters ID/PAN Card (any one)
Proof of Residence:-Leave and License Agreement/Utility Bill (not more than 3 months old)/Passport (any one).
Latest 3 month bank statement (where salary/income is credited).
Salary slips for the last 3 months.
2 Passport Size photographs.
Proof of Residence:-Leave and License Agreement/Utility Bill (not more than 3 months old)/Passport (any one).
Income proof (audited financials for the last two years).
Latest 6 month bank statement
Office address proof.
Proof of residence or office ownership.
Proof of continuity of business
Have a good income: A good credit score is very important, but a good income will also be very important. If you don’t have a good income, how will you pay your EMI for a personal loan? It is very important to understand your eligibility criteria in terms of income. If you don’t have a good income, you need to try out different ways to increase your income. A loan provider will approve your loan only when you have sufficient income to meet expenses and EMI. Apply For home improvement loans.
Job stability: Job stability is important. You need to show stability at work by working with a particular employer for a long period of time. Take promotions and increments to show your growth and stability. When you have job stability, there is a low possibility of having a job lay off or any other undesirable situation. Make sure you stabilize your employment and then only apply for a personal loan.
Business: If you have a business, you need to have a good income, documents, cash flow, and cash reserve. It is important for you to show the stability of your business. A personal loan can be useful if you want to ignore a business loan. For a personal loan, you need to show a stable income from a business.
Wrapping up
A credit score and a credit report are very important for loan approval. However, that is not the only thing that is counted as eligibility. Check your credit score and keep yourself updated with a good score to get a good rate of interest.
Read More : How to Get a Small Business Loan for a Startup
