Here are some Possible Reasons why You have a Low CIBIL Score

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CIBIL score is a crucial number that many lenders use to determine an applicant’s creditworthiness. Accordingly, they offer a loan amount and decide the interest rate. That is why most lenders require applicants to have a minimum CIBIL for personal loans. If an individual’s CIBIL score is low, it might be because of several reasons, including:


  • Errors in the credit report

  • History of delaying or missing EMIs and credit card bill payments

  • High financial obligations consume more than 50% of their monthly income

  • High credit utilization ratio due to excessive credit card usage

  • No credit history or new credit history

  • The same type of loans throughout the credit history


Those with a low credit score will face difficulty getting a personal loan from most lenders. Although some financial institutions provide personal loans for low CIBIL scores, their interest rates are usually higher than regular personal loans. Therefore, before applying, improving and achieving the minimum CIBIL score for personal loans is advisable. Otherwise, you can look for lending institutions considering the Experian score instead of CIBIL scores.

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