What Credit Score is Needed for a Personal Loan

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What Credit Score is Needed for a Personal Loan

A credit score plays an important role in a personal loan. the reason after this is a personal loan is an
unsecured loan and the lender gives you this only on the basis of your credit history and the source of
income. So your credit score has to be very good to get a personal loan. The bank considers your credit
score on a personal loan. Before knowing that how a credit score affects your personal score and what
should be the minimum credit score if you want to get a personal loan, let us know what a personal
loan and a credit score are?
A Personal Loan
A personal loan is a kind of unsecured loan that allows you to borrow money from a bank or non-
banking financial organization at some rate of interest for a period of time. This is known as the tenure
of the loan. In a personal loan, there is no need to pledge anything to the bank as a security. If your
income is good, your credit history is good and your age is more than 21 years, then you will easily get a
personal loan otherwise you will have a problem with it.

Credit Score

A credit score is basically a measure of the customers' behavior to deal with his/her debts. If you are
good with your debts and loans then your credit score would be good otherwise it won’t. It ranges from 300 to 900. CIBIL is a company of India that keeps records of all debts of all the customers
in India. If your credit score is not good it means that you haven’t paid your past loans or credit card bills
properly or you' re no dealing properly with your present debts. So it is important to have your credit
score good. A credit score of more than 720 is considered a good credit score. But to get a personal
loan your credit score should be 650 at least. If your credit score is less than that you might not be able
to get a personal loan. So it is advised to you to keep your credit score up always.