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Personal loan: How to secure a personal loan with 710 credit score
07 January, 2025 | 18:00 IST

Credit score is one of the most important parameters that banks and other financial services companies check before approving a personal loan. Having a good credit score is always an advantage, as it may lead to instant loan approvals, higher loan amounts and lower interest rates. It can sometimes even grant you a loan if your salary is low or you do not fulfil other criteria set by the lender.

Your credit score reflects your performance as a borrower, and your ability to repay your borrowings on time. The credit score criteria may differ from bank to bank. Let’s explore the possibility of easy borrowing with a 710 credit score for personal loan.

Table of Contents

What is a credit score?
Securing personal loan with a 710 credit score
How to improve your credit score
Benefits of having a good credit score
Summary

What is a credit score?

A credit score is a three-digit number that evaluates your creditworthiness, ranging from 300 to 900. It indicates to lenders how reliable you are in repaying your loans. Issued by four credit information bureaus in India, your credit score reflects your financial reliability and plays a key role in securing traditional loan approvals.

ALSO READ: What’s the most important factor affecting your Credit Score?

Securing personal loan with a 710 credit score

If you have a 710 credit score, a personal loan can be granted to you easily since it is considered a good credit score.

Moneycontrol has partnered with seven lenders to provide access to 100% digital instant loans of up to Rs 15 lakhs. You can get the loan in just three steps — enter details, complete the KYC process and set up EMI tenure. The interest rates start at as low as 12% per annum, depending on your employment status.

Banks and NBFCs generally view 710 credit score personal loan as a safe disbursal criteria, as this reflects that you have been able to pay your outstanding borrowings timely with little to no issues.

A 710 credit score therefore falls under the ‘Good’ category, which spans between 650 and 749 as per the scoring model of CIBIL. This score is however just below the national average of 715. This is why you may not always qualify for the best interest rates, though they will not be too high. You will also qualify for an array of loan products, including a personal loan in India. With a 710 credit score, personal loans and credit cards will be available to you fairly easily.

How to improve your credit score

Since 710 credit score for personal loan falls in the slightly lower bracket of a good CIBIL score, you have plenty of chances to improve it. Here is how you can do it.

Make payments on time: The first and foremost trick to improve your credit score is by making your outstanding payments on time.
Check credit score regularly: One of the most important methods to increase your credit score is to track it. Monitor your credit score whenever possible, but make sure you don’t do it too often or else it may bring the score down.
Keep your credit utilisation low: Keeping your credit utilisation low can boost your credit score. Your credit utilisation should be around 30% of your available credit.
Limit new loan applications: If you have too many credits, try to consolidate them and refrain from making any new loan applications. This will boost your credit score significantly.

Benefits of having a good credit score

A high credit score increases your chances of getting instant loan approvals. The higher your CIBIL score, the better your likelihood of securing a loan quickly.
A good credit score can also help you negotiate more favorable loan terms. For instance, if your credit score is above 700, you may be eligible for lower interest rates compared to those with a score below 700. This can result in lower EMIs, making it easier to repay the loan.
Additionally, a high CIBIL score can make you eligible for a higher loan amount, as banks are more likely to offer better terms to borrowers they trust.
Having a strong credit score also provides the advantage of access to pre-approved loans and special offers with more favourable terms, particularly with banks where you already have an account.

Late payments on a 710 credit score personal loan can bring it down significantly and it may come below the 649 bracket, which will be detrimental to your credit health. Therefore, be cautious about your loan repayments and strive to improve your credit score.

ALSO READ: What is the average credit score in India and how to improve your credit score

Through the Moneycontrol app or website, you can apply for a loan of up to Rs 15 lakhs, with interest rates starting as low as 12% per annum. The process is completely paperless, allowing you to get an instant online loan with ease. You can also check your credit score for free and choose the best loan offer as per your credit profit.

Summary

A 710 credit score qualifies as 'Good' and can help you secure personal loans with ease. Learn how to improve your score further and get instant loan online.

Disclaimer

This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.

About the Author

Fintech

Stay updated on the latest personal finance trends, with a focus on products like credit cards, credit score, personal loans, fixed deposits, and more

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