When your Cibil Score becomes Zero, is there a possibility of getting a loan in this situation? know everything here
If you have never taken any loan and you do not even use a credit card, then you do not have any credit history. In this situation, your credit score becomes zero.
Whenever you go to take a loan, your CIBIL or credit score is definitely seen. A person’s CIBIL Score has his credit history, seeing which bank decides whether he should be given a loan or not. That’s why the CIBIL score should always be good. A credit score is determined between 300 to 900. A CIBIL score of 700 or above is considered good.
The better the CIBIL score, the easier it becomes for you to get a loan. But do you know that sometimes the CIBIL score also becomes zero? If you have never taken any loan and you do not even use a credit card, then you do not have any credit history. In this situation, your credit score becomes zero. Can I get a loan from the bank in such a situation? Let us tell you.
Zero Scores Create Confusion
In this case, the retired officer of bank A. Of. Mishra explains that a zero CIBIL score is like a chicken or egg first puzzle. The person who has not taken the loan, then in such a situation, cannot say that he is reliable and he is not reliable, that is, there is confusion in front of the bank about whether to give the loan or not.
For this reason, many financial institutions hesitate to give loans to such people. However, it is not that you cannot get a loan if you have a zero score. In such a situation, the person is tested on other parameters. But in this situation, whether you will be able to get a loan at low-interest rates or not, cannot be said.
Tested On These Parameters
On having a zero CIBIL score, the person’s source of income, educational qualification, etc. are looked into. For example, if a person is a doctor or CA or in a higher position, then even if he does not have a credit history, he has every possibility of getting a loan easily because his income is substantial.
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If you do not have such a high-position job, then you can assure the bank by giving a bank statement of a few years to show your better financial condition. Apart from this, all your bills which you have been paying regularly till now can be shown as proof. In such a situation, it will be easy for the bank to understand whether you are eligible to give a loan or not.
What Does The CIBIL Score Depend On?
CIBIL score depends on many things. 30% of the CIBIL score depends on whether you are repaying the loan on time or not, 25% on secured or unsecured loans, 25% on credit exposure, and 20% on loan utilization. Credit score ranges from 300 to 900. If your credit score is 750 or above then it is considered good. A score between 550 to 750 is considered good and a score between 300 to 550 is considered poor.
Who Sets Credit Scores?
All credit bureaus issue your credit score. These include credit information companies such as TransUnion CIBIL, Equifax, Experian, and CRIF Highmark, which are licensed to collect, maintain, and generate credit reports/credit scores based on individuals’ financial records. . Credit score is decided between 300 to 900. It is decided on the basis of a credit history of 24 months.
