Does CIBIL score matter while availing Two Wheeler Loan?
Credit Score:
A credit score is a number between 300-900. And it shows the borrower's creditworthiness. The higher the credit score is, the higher the customer is worthy of giving credits. Your credit history makes up your credit score. Many loans, like unsecured loans, require a decent credit score to apply for that loan.
A credit score between 300- 570 is considered poor, a credit score between 570- 700 is deemed fair, a credit score between 580- 750 is considered to be good, a credit score between 760- 800 is considered very good, and a credit score between 800- 900 is considered excellent.
You get a lot of benefits if your credit score is high. Some of them are listed below:-
Approval:- The whole application and approval process is quite fast if your credit score is high. And if your credit score is standard, your application will take an average of 2-7 business days.
Interest Rate:- You can bargain or negotiate to lower your interest rate if your credit score is high. Some banks have different interest rates for people with high credit scores.
Charges:- You can also avoid a lot of expenses that'll be occured by all the hidden charges. You can ask the bank to give you a detail of all the charges that'll be included. And if you're tight on budget, you can deduct some of them, and banks will allow you to offer because you have a high credit score.
So it is necessary to maintain a good credit score. Because eligible criteria usually differ from bank to bank, it is advisable to maintain an excellent credit score to be ready and prepared. And, with the points mentioned above, you can gain many benefits by doing so. It is also advisable to plan your budget earlier before applying for Two Wheeler Loan.
Impact of bad credit score in two wheeler loan:
Banks would not trust you and reject your request for a two-wheeler loan because you have a bad credit score. No one wants to deal with a customer who is risky and not worthy of credit. And your credit score clearly shows that. Not only a two-wheeler loan but most of the banks will reject your loan application for unsecured loans.
How to get a two wheeler loan with a bad credit score:
There are some ways to get a two wheeler with a bad credit score:-Down Payment:- You'll have to make more down payment. To convince the bank that you're serious about it and you'll pay back the amount. Usually, banks (like:- Oriental Bank of Commerce Two Wheeler Loan or Axis Bank Two Wheeler Loan) only take 10%-20% of the loan amount as a down payment, and the rest used to be included in EMI instalments. But for this case, they may take 50% as a down payment. Negotiate:- Try to negotiate and convince the bank manager. Find out better terms for your deal even though you'll have to pay a high-interest rate.Co-signer:- This method is used by a lot of people who have a bad credit score. So you can get a co-signer who will act as a guarantor for the loan. You can also borrow their credit score to get the loan approved. So it is advisable to find a co-signer with a good credit score. By this, you can get your two wheeler loan approved instantly, along with some great deals and attractive interest rates. But a lot of banks only accept an employed co-signer with a steady income.Compare:- There are a lot of banks and lenders that have different eligibility criteria. So by doing some research, you'll be able to find the best lender for you.
Conclusion:-
Getting a two wheeler loan can also help you to increase your credit score. So if you pay all the instalments on time along with interest, then your credit score will start rising alternatively.
