Online personal loan: Here’s how to secure a personal loan with credit score of 700

Securing a loan online heavily depends on your creditworthiness, which is largely determined by your credit score. A score of 700 is often seen as the threshold for eligibility for personal loans, but does it guarantee a quick approval? And what factors should you consider when applying for a 700 credit score personal loan in India?

Though most lenders generally prefer borrowers with credit scores of 700 and above, here are a few key factors you should consider to conveniently avail a personal loan online.

A credit score of 700 for personal loans

Credit score is a three-digit number that reflects your creditworthiness based on your borrowing and repayment history. In India, the CIBIL score is widely used by lenders to assess an individual’s ability to repay a loan. A score of 700 is considered good but not excellent. It indicates that you are a responsible borrower, but you may not have the best credit score in the eyes of the lender.

While a 700 credit score personal loan is possible, there are other factors that lenders will carefully assess before approving the loan. Lenders usually look at the loan type, your income and how well you manage your finances.

Can you secure a personal loan with a 700 credit score?

You can get a personal loan but only under specific conditions. Lenders may consider your score as average, and it might not guarantee the best interest rates or loan terms. But it’s still possible to obtain a loan, especially if you show other strengths in your financial profile.

Lenders will evaluate your overall financial situation, including income, current liabilities and job stability.

If you have a 700 credit score, you may also be subject to slightly higher interest rates, as the lender may consider you a moderate risk. To avoid this, you can take steps to improve your application and increase your chances of approval.

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How to qualify for a personal loan with a 700 credit score

• Apply for a smaller amount: One of the ways to improve your chances of getting approval for a personal loan in India with a 700 credit score is by applying for an amount that you can comfortably repay. Lenders may view larger loan amounts as risky, especially for applicants with average credit scores.


• Provide proof of income: Lenders want to be assured that you can repay the loan. So, providing clear proof of income, such as your most recent pay slips, tax documents and bank statements, is essential.


• Ensure your credit report is error-free: Your credit score may be negatively impacted by errors in your credit report. Review your credit report before applying for a personal loan. Any errors that you spot, like inaccurate payment records or falsely reported debts, should be intimated to the credit bureau for rectification.


• Explain any past financial troubles: There may be times when your credit score is affected due to events such as job loss or medical emergencies. If you’ve faced financial troubles in the past, but your current financial situation is stable, don’t hesitate to explain this to your lender.


• Consider applying with a co-applicant: If you’re concerned about your 700 credit score personal loan application being rejected, consider applying with a co-applicant.


• Compare multiple lenders: Different lenders have different conditions for approving loans. Compare many lenders before finalising the best one.

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Boost your credit score before applying for a loan

Taking a few steps to improve your credit score will be helpful in availing new credit facilities at lower interest rates in future. Even if you are not looking forward to applying for a loan or credit card immediately, it’s advisable to maintain a high credit score. Here are a few simple tips to boost your credit score:

• Pay your bills on time: Late payments, especially on credit cards or loans, can significantly harm your score. To improve your score, ensure that you pay your credit card bills and EMIs on time.


• Limit new credit applications: Your score may temporarily dip each time you apply for new credit because it causes a hard inquiry on your credit report. Do not apply for new loans or credit cards unless it is absolutely required.


• Maintain a healthy credit mix: Lenders like to see that you can handle different types of credit instruments responsibly. If possible, try to maintain a mix of credit cards, personal loans, and auto loans. This diversity shows that you can manage different forms of credit and strengthens your creditworthiness.


• Keep old accounts open: The length of your credit history has an effect on your score. Even if you have paid off some old accounts, keep them open. The longer your credit history, the higher your credit score is probably going to be.


• Review your credit report regularly: Check your credit report regularly for any errors or discrepancies. Correcting mistakes promptly can ensure that your score accurately reflects your credit behaviour.

In conclusion, while a score of 700 is considered good, it’s not exceptional. So, being proactive in your application process can help increase your chances of approval.

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