Whether it’s applying for a Personal Loan or a car loan, any of this is not an easy task to complete. Financial institutions look at your financial history to provide you with any kind of financial assistance. They provide loans only to those individuals who assure them that they can repay their EMIs on time. A high Cibil Score makes it easy, whereas a low cibil score makes it difficult. A Low Cibil scorer considers a Cibil Defaulter, to whom banks avoid granting a loan. But that’s not the end.
Who is a Cibil Defaulter?
The history of your loan and payments with banks and any other financial institution refers as CIBIL Report. With the Cibil report, Cibil Score is being counted. Here comes a question “What is a cibil score”?. So, Cibil Score basically is a number between 300 to 900. Lower than that makes you a cibil defaulter. Mostly, Banks prefer high cibil scorers to issue a car loan, probably around 750. Lower than that makes it difficult to avail it. However, getting a higher cibil score may be a difficult task but definitely, it is not an impossible one.
What makes your Cibil Score Down?
- Irregular payments of loan EMIs and Credit Cards: Irregular or delayed payments of your previous loans and credit cards let your cibil score down.
- Submitting multiple applications and rejections to get credit: Even if you are very much in need, do not submit multiple applications to multiple financial institutions to avail higher finance credits. Because getting rejected by multiple loan lenders can affect your credit score as well.
- Mind your Credit Limit: Using an excess of your credit cards with its 90 – 100% limits can also down your cibil score.
How to improve the Cibil Score?
First, paying your loans EMIs, or credit card bills on time is the most important task to improve your Cibil Score. You can easily improve your cibil score by doing so.
Second, do not use your credit card very frequently. Using less percentage of your credit limit can make your score stable. Using 30% around of your credit limits is considered as good, but beware not using, can give you negative points as well.
Third, frequently check your credit reports and maintain the ratio. There could also be some errors in your credit report, which you can identify if you check your credit reports frequently. Fixing error in your credit reports also helps to improve your credit score.
After fixing your score you can apply and get a car loan, but if it does not happen, there are several other ways to get a car loan. Below are mentioned some of them.
There are several ways to get a car loan if you are a cibil defaulter.
- The very first thing is to try to improve your Credit Cibil Score.
- The other thing that you can do is offer a high down payment to the loan lender, except a low or minimum down payment. This can make sure your car loan is on spot.
- Banks pre-approved loans: Some banks provide pre-approved loans to their existing customers. Even when you have a bad credit score, you have a positive chance to get an approved car loan from your bank.
- On your collaterals like FD: Without any cibil score, if you owned an FD with the bank you are applying for a car loan, the huddles can be lessened. Banks can provide your loans on your FD amount.
How can “ReferLoan” help you to get a car loan with Low Cibil S core?
ReferLoan is a financial support provider to those in need. Tie-ups with multiple financial organisations, Banks and NBFC is what makes RefreLoan your best choice for any financial advice and support. Getting any sort of loan such as gold loan from us can help you improve your CIBIL score.
750 or more than its cibil score is considered as good to apply for a car loan.
Yes, there are plenty of ways you can get a loan without having a good cibil score. Like on FD, gold, or any other collateral.
Your credit score is built by the 4 main credit bureaus of India – CIBIL, Equifax, HighMark, and Experian. Amongst all of them, CIBIL is the oldest bureau. These four bureaus hold your all-financial data, on which basis they release your cibil score.