A credit point of more than 800 is widely admired and is considered excellent in the country. It is often associated with smooth loan approval and profitable interest rates. Yet many lenders with excellent credit rating are in the face loans. It makes them surprised and frustrated. Therefore, it is important to understand the basic reasons, expert insights along with several important factors outside the three digit numbers that influence the decisions of financial institutions. High credit rating, but yet loan rejection: the paradox a high creditworthiness, ie a score of 750 or more signals strong creditworthiness. It is still not a guarantee that your submitted loan application will definitely be approved. Financial institutions examine various aspects of your financial health, such as revenue stability, existing debt, credit behavior, etc. For example. If your income is irregular, or you have changed your job regularly, it is looked at very seriously by the banks and can even lead to the rejection of your loan application. Expert view Jai Kumar, co-founder, Techfini, believes that on a fundamental level, he says: “Even with a top score, borrowers can reject your loan if your income is unstable, the debt is high, whether your credit history is thin or up to standard.” Vibhore Goyal, founder, OneBanc, on the other hand, is of the opinion that it amounts to confidence, he says, “Borrowers use opaque algorithms-not only credit values to check debt-to-revenue, job stability, location and even mobile data. or employment: Banks prefer lenders with a steady source of income. Income-to-income ratio. Past payments in the past, credit report errors, improper or pending settlements, or contradictions in your personal information, may undermine your application, even if your creditworthiness is high. Loan application can be rejected. to use a personal loan on profitable conditions. do. This binding does not affect our editorial content.
Why you still refused a loan despite an 800+ creditworthiness – 5 hidden reasons | Mint
