As evident from its name, quick loan is one of our primary resorts; every time we’re stuck in a financial mess. But very often, getting approved for this loan might be extremely difficult. Yes, there are several instances when your quick loan application gets rejected, leaving you grappling for answers. So, what can be a way out? Also, why is your application getting rejected in the first place? Well, that’s exactly what we will find out, over the next few sections.
You Are Not Using Any Credit
So, you’ve cleared your debts and given up the credit cards as well. Sadly, staying out debt or giving up your credit card won’t really help you pull up your credit score. Since you have no active lines of credit against your name, credit bureaus would have no idea about your repayment abilities. What’s more, they also won’t know if you manage your credit efficiently, and this eventually result in a lower credit score. One of the best ways to deal with this situation is by choosing an active line of credit. If you are not comfortable with credit cards, get a small quick cash loan or instant loan if you qualify. However, if you are not planning on borrowing that big of a sum, consider using your credit card for funding small expenses every month.
Your Credit Cards Have Maxed Out
If your financial liabilities are less and you always make timely monthly payments- you can be considering the thought of maxing out a credit card. But guess what? Maxing out on even one credit card can have a negative impact on your credit report. So, regardless of the situation, do not max out on cards at any costs.
If you’re looking to get your quick loan approved, start out by keeping the balance of your credit card on the lower side. According to Financial experts, it is best if you keep the balance under 10 percent of your credit limit. If, however, if you’ve incurred more costs, try to clear them off on the same billing cycle. Unless you do this, your credit score will drop, thereby reducing your possibilities of getting a quick loan.
You Switch Bank Accounts Too Much
Switching bank accounts isn’t a decision that should be taken lightly. So, if you’re indeed looking to switch, try making it permanent. Opening new savings accounts can often have a negative impact on your credit score. While it might not be a big drop, you should still avoid opening a new savings account right before you’re planning to apply for a quick loan in India.
Bottom Line
In addition to following the given guidelines, also work on clearing all unpaid debts. Finally, once you think you’re ready for taking the big plunge, choose a digital lending platform and apply for a quick loan right away. At Qbera, we offer quick loans starting from 11.99% p.a. Simply visit our portal, check our available tenures, and read through the fine print before taking the big plunge.
Qbera - Online Personal Loan 