A credit score or CIBIL score is the first thing that you lender sees while determining your creditworthiness for awarding you any loan and the doctor loan is no exception. Yes, the CIBIL score is one of the major parameters which decides whether a prospective borrower is eligible for a loan or not. The CIBIL score lies in the range of 300-900. Creditors consider a Credit score of 750+ or more out of 900 as the ideal score to approve the loan and that too at a lower interest rate.
How one handles his/her loan repayments, credit card debts and more makes or breaks your CIBIL score. Thus, not being careful enough to maintain a higher Credit score can jeopardize your chances to avail a doctor loan.
Here are some mistakes that you should avoid if you want to get a doctor loan approval at a lower interest rate.
Table of Contents
1. Delayed credit card payments
To err is human and with jam-packed schedules that most of us all having, it is common to default on an ensuing credit card EMI payment. Thus, you need to pay some penalty for making a delayed payment to your bank. However, one of the ill effects of making delayed credit card payments means affecting the CIBIL score.
2. Not depositing sufficient amount in your loan account
There could be times when you would not be able to make some timely loan EMIs. Some of the borrowers enable auto-debit facility for their loans, and if there are not enough funds to ensure timely repayments can result in a bad credit score.
3. Applying for a loan to many lenders
If you think that applying for the doctor loan to many lenders at a time will increase your loan approval probability, you are wrong! You should note that every time you submit a doctor loan request to a new lender, the service provider pulls out your credit score which affects your score. If you keep requesting for a doctor loan from many lenders assuming at least one will approve it, it will end up impacting the score. What’s more, lenders may assume you credit hungry and may blacklist you as well.
4. Not having a mix of loan types
Only having unsecured credits such as personal loans, credit card debts and more will affect your financial profile for a possible doctor loan in the future. Hence, having a mixture of secured and unsecured loans work well to help you keep the CIBIL score in order.
5. Owning multiple credit cards
Yes, you may argue that owning one credit card may not complement your needs entirely and that’s why you own multiple cards to suit multiple needs. However, the catch of owning numerous credit cards do not reflect greatly on your CIBIL score. If you mismanage your credit card debts and miss payments, it can affect the credit score badly. What’s more, keeping track of many credit cards is tough and can juice out your income unless you manage them tactfully.
The Bottom Line
Now that you are aware of the mistakes that can affect your credit or CIBIL score negatively, you should ensure to keep it up and healthy to avoid all mistakes. The relevance of the robust to how to improve CIBIL score especially if you are to apply for the doctor loan in future!
If you are not yet convinced about the value of the credit score in assisting you to get a loan approval in future, consult a finance expert now!