CIBIL Score Check: What Banks Check Beyond Your CIBIL Score

You have done the cibil score check. The figure seems to be quite good. However, you apply for a loan but are rejected.

Sounds confusing? It is not.

The banks do not consider one single number while considering a borrower. While a good CIBIL Score may help, the banks will look at various other factors as well.

Additional Information that Banks Consider besides Your Score

1. Your Income

The only thing a lender wants to know is whether can you comfortably handle the EMI?

No matter how high your score is, it will not balance your income that does not justify the borrowed amount.

2. Your Debt

Are you paying EMIs for loans that you have already borrowed? The bank may take into consideration your existing debt.

3. Your Employment Status

If you frequently change your job, then it may affect your ability to repay the loan.

4. Your Credit Utilisation

It is not a good idea to use up all of your credit limits on your credit cards. Lenders have access to know how much of your credit limit you’re using.

5. Your Requested Amount

If you ask for ₹2 lakhs or if you ask for ₹20 lakhs, the two requests will be seen as entirely different risks.

Need help in finding out on how to increase cibil score? We at PrimeScore suggest that the answer lies in punctual payments, moderate credit utilization and few applications.

Don't Look for a "Quick Fix"

Applying for an instant loan for low cibil score or personal loan with low cibil score is likely what comes to mind after a rejection. However, it's important to find out why you were rejected first.

It's possible to check your cibil score, check cibil, or even check cibil score for free through various platforms prior to making another attempt. You could be directed to multiple services through searches like SBI cibil score check free online by pan number or CSC cibil login.

Additionally, keep in mind that if someone with a high cibil score co-signs your loan, your interest rate on the loan may decrease. But that isn't guaranteed; the lender can still assess income, debt and other factors. However, it's not a given since your loan will be evaluated from other factors like your income and debt among others.

The take away: CIBIL score is the headline. Your entire financial status is the story.

FAQs

1. Does a high CIBIL score ensure that a loan is sanctioned?

No. The banks look at many other financial aspects besides this score.

2. Does the income level impact the sanctioning of the loan?

Yes. The lenders check whether the income level justifies the amount of EMI.

3. Is the previous loan/dues information relevant?

Yes. Previous loans and dues can influence a new loan application.

4. Can credit utilization impact the eligibility for getting a loan?

Yes. It might be seen negatively by the lenders.

5. Does a co-signer make any difference?

Yes. A financially strong co-signer may help.