Tightening Credit Score Requirements

 Stricter Criteria for Credit Scores

It is getting harder for people with lower credit ratings to get loans in India since lenders are getting stricter about their credit score standards.

Important Points to Remember:

1. Higher credit score criterion: A lot of lenders have increased the minimum credit score they want; some now demand scores of 750 or more.
2. Tougher credit evaluation: In addition to credit scores, lenders are now performing more comprehensive credit evaluations.
3. Greater importance placed on credit history: A longer credit history with a solid payment history is becoming more and more significant.

Effect on Debtors:

1. Reduced access to credit: Individuals with poorer credit ratings may find it tougher to get loans, even with a regular salary.

2. Higher interest rates: Lower credit score borrowers might be eligible for higher interest rates, which would raise the loan's total cost.

3. Higher rejection rates: Loan applications may be rejected more frequently as a result of stricter credit score requirements.

Expert Insights: 

According to [shivam modanwal], a senior analyst at [Credit To Hai], "the growing number of defaults and non-performing assets is making lenders more cautious." "While this may make it harder for some individuals to secure loans, it's essential for maintaining the stability of the financial system."

Borrowers can take proactive measures to improve their credit health and increase their chances of obtaining loans at favorable interest rates by being aware of the changing credit landscape. 

1. Check your credit report: Make sure your credit report is accurate and up-to-date. 

2. Improve your credit score: Work on improving your credit score by making timely payments and reducing debt. 

3. Explore alternative lenders: Take into consideration alternative lenders that may have more flexible credit score requirements.

Disclaimer:

CreditToHai blog is provided for informational purposes only. The information on this blog is not intended to be taken as professional advice. You should not rely solely on the information on this blog for making financial or credit-related decisions.