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| April 28, 2024

Getting a Personal Loan Online with a 700 Credit Score

Life is unpredictable and you may suddenly need money for important things like medical treatment, education, or a wedding. A personal loan can help you get the funds you need during such emergencies. However, your CIBIL (credit) score plays a big role in getting approved for a personal loan. You might wonder, how much CIBIL score is good for a personal loan? A score above 700 is generally considered good and makes it easier to get a loan. Even if your CIBIL score is around 700, you can still apply for a personal loan if you are a credit card holder. With some preparation and by managing your credit well, you can get a personal loan online when you need it.

Can you get a personal loan if your CIBIL score is 700?

It depends. You need to figure out how much money you need. Look at your expenses and income to know the right loan amount. Even with a score of 700, which is not very high, you can still apply for a personal loan. However, some lenders may charge you higher interest rates because your score is only moderate. When applying, don't send applications to multiple lenders at once thinking it will increase your chances. This can actually hurt your credit score further.

Once you've applied with one lender, get all your documents ready like pay slips, bank statements etc. Incomplete or incorrect documents are a common reason for loan rejection. If you understand your needs, choose the right lender, and submit proper documents, you stand a good chance of getting that personal loan despite a 700 CIBIL score.

Different Ways to Get a Personal Loan with a 700 Credit Score

A CIBIL score of 700 is considered an average credit score. It doesn't mean you can't get a personal loan, but lenders will examine your application more carefully. While a 700 score isn't bad, it also doesn't guarantee loan approval. Lenders will want to take a closer look at your overall financial situation. However, there are things you can do to increase your chances of getting the personal loan you need, even with a moderate 700 CIBIL score.

Here are some ways to do so: -

Apply for a Reasonable Loan Amount

With a 700 score, you may seem riskier to lenders so don't ask for too large a loan amount that you can't repay easily. Request an amount you actually need and can afford based on your income and expenses. This shows responsibility.

Check and Fix Credit Report Errors

Order your credit report and go through it carefully. If there are any mistakes like wrong payment details, dispute them with the credit bureau. Even small errors can significantly drag down your score so get them fixed.

Show Proof of Income

Lenders want to see you earn enough to repay the loan. Provide the latest salary slips, bank statements, tax documents etc. If you recently got a raise or any extra income, highlight that to boost your chances.

Apply with a Co-Signer

Having someone with a higher credit score co-sign the loan makes you look less risky. This could be a family member or friend but they'll be equally responsible for repayment if you can't pay.

Explain Any Financial Troubles

If you had issues like job loss or medical bills that caused missed payments and affected your score, explain this briefly to the lender. They may understand the situation better.

Compare Multiple Lenders

Different lenders evaluate applications differently. By checking with several lenders, you're more likely to find one that gives you the best terms based on your specific profile.

How to Improve Your 700 Credit Score?

If not urgently required, spend some months improving your 700 score before applying for the loan. A higher score gets you better interest rates. Here are some ways to improve your 700 credit score:

  • Pay all your bills on time - credit cards, loans, etc. Late payments really hurt your score, so make sure to pay the full amount due each month if possible.
  • Don't apply for too many new credits at once - each application gets noted and can temporarily drop your score. Apply selectively when really needed.
  • Have a mix of different kinds of credit - cards, personal loans, auto loans etc. This variety shows you can handle different types responsibly.
  • Keep old accounts open even if paid off. A longer credit history helps your score.
  • Check your credit report regularly for errors and get them fixed. One small mistake can bring your score down unfairly.

With a moderate 700 score, lenders may charge you higher interest rates since they see you as a bit riskier. But with some smart ways and providing the right documentation to lenders, you can get approved for a personal loan despite a moderate 700 credit score. If not urgent, another good option is to try improving your credit score before applying for the loan. A higher score above 750 makes lenders more confident that you will repay responsibly. This gets you approved more easily with lower interest rates. Many NBFCs like Muthoot Finance offer personal loans at reasonable rates, depending on your credit profile. With a moderate credit score and proof that you can repay comfortably, getting the personal loan you need becomes much easier.

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