You heard of an opportunity to take over a polyclinic facility nearby. Sadly, you have to give it a miss. You realise that you do not have enough resources and lenders are hesitant to offer loans since you have a poor credit score.
Your CIBIL score is what speaks of your creditworthiness in front of banks or other financial institutions when you apply for a loan. An individual with low or bad CIBIL score is usually denied loan sanctions. Having a bad CIBIL score can hinder your chances of availing a doctor loan.
Why Is CIBIL Score Important to a Doctor?
To expand their practice and business, you as a doctor might need financial help for it. A CIBIL score can help you get the finances you need. Having a good credit score can fast-peddle your loan application for further formalities.
But, seeing a bad credit score, banks or other financial institutions are known to reject applications.
What Will Affect Your CIBIL Score?
● Payment dues
Lenders need to know that their money is returned to them in the time given. If you have a payment dues on your credit card, or have ongoing loans, it will tend on influencing your credit history. The CIBIL score helps lenders know how credible you are for a loan. A bad CIBIL score will lessen your chances of getting credit without any hassles.
Amount of utilization
Having many loans and credit cards reflect that you have pending dues to pay. The amounts of those also matter. It is commonly known that the amount of credit you use from what is available to you shows how you manage your funds. It is advisable that you use only 30% of the total credit available to you and pay the bill on time.
● Healthy mix of credits (secured and unsecured)
Availing too many unsecured loans reflect bad credit score. There should be a healthy balance between secured and unsecured loans in your name. This shows the lender that you have securities that you have given for a loan. It holds up your CIBIL score and assures the lenders about your credibility.
● Infrequently checked credit report
Going a long while without checking your credit scores can land you in trouble. It is possible that you may have missed some information. Checking your credit score regularly will ensure that you have no wrongly put information or any technical error. It helps in keeping your credit history clean.
● Too many debts
If you have too many debts, lenders will be hesitant about lending you money. More so, if the debts have bad repayment history. Keeping your records clean, paying your EMIs regularly and keeping a track of your credit are all ways of avoiding too many debts.
● Many recent accounts
Availing a loan when you have recently applied for credit cards or other loans reflect badly on you. It may also give the lender the impression that you are greedy. Your CIBIL score is, hence, affected and it lessens the chances of you getting a loan when you actually need one.
How To Improve Your CIBIL Score
- Pay your dues on time
- Fasten your debt repayments
- Don’t have too many unsecured loans
- Monitor your finances
- Keep your credit history clean
Conclusion
To get a doctor’s loan, your best bet is to always maintain a good CIBIL score. It is certainly a boon. Having a healthy score not only improves your chances of being approved for a loan easily but also helps you earn lower rates of interest. Bajaj Finserv offers a range of doctor loans at affordable rate of interest. You can use the credit given to you on a flexi-loan basis that saves you interest. The doctor’s loan from Bajaj Finserv comes to you in times of need.
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