Loan Rejected? What Can Help You Fix That?

A personal loan offers versatile financing that one can use for various needs like debt consolidation, home renovations, or a wedding. Unlike specific loans like those for purchasing homes or vehicles, personal loans offer flexibility and speed, more so when users apply for them on a personal loan app. Such apps ensure that digital underwriting mechanisms give applicants a green or red signal instantly, so financial planning becomes easier.

While the process has become easier and faster, what makes a financial company reject a potential borrower’s application? Often it is one’s credit score that is found lacking or an aspect of other eligibility criteria. The OneScore credit score and loan app empowers users by allowing them to improve their eligibility by tracing, understanding and boosting their credit health. Here’s how.

Why Credit Score Matters in Loan Approval

Banks and NBFCs usually offer personal loans without collateral, unlike auto loans or home loans, where the asset acts as security. They use the borrowers’ credit score to assess their repayment capacity.

This score reflects their past behaviour with credit and demonstrates their discipline in and reliability. It is important for getting approval for a loan since it:

• Displays Creditworthiness

A borrower’s credit score reflects how responsibly they are likely to handle their credit repayment. A high score indicates sufficient experience with different types of credit, timely repayment in the past, and the ability to service new debt.

• Affects Interest Rates

Lenders offer lower interest rates to borrowers with high credit scores as they pose a lower risk of default. This makes the loan more affordable.

• Impacts Loan Approval

Lenders may reject a borrower’s application if they have low scores. Most require a CIBIL score of 730+. Some may still approve an application with a lower score, but the terms may not be too pocket-friendly.

• Influences Loan Terms

A strong credit score can help users qualify for a larger loan amount and better repayment terms, such as a longer tenure.

What are the Credit Score Requirements For Improved Eligibility?

Here's a quick breakdown of how different credit score ranges affect borrowers’ chances of getting approval:

 

Credit Score Range	Category	Impact on Loan Eligibility
750 – 900	Excellent	Quick approvals, lowest interest rates, and access to higher loan amounts
700 – 749	Good	Strong approval chances with favourable and competitive interest rates
650-699	Fair	Possible approval, but lenders may offer higher interest rates
600-649	Poor	Harder approval, expect higher interest and terms
Below 600	Very Poor	Limited options, very high interest rates and may need a co-signer or provide collateral

How OneScore Can Help

Building and maintaining a clean credit report requires consistent effort. Users need to review their credit accounts regularly and take proactive steps to improve their credit health. The OneScore App simplifies this process by offering unlimited free downloads of credit reports from the top two credit bureaus in India, namely TransUnion CIBIL and Experian. Here’s how its features help users boost their credit profile:

• Stay Informed with Lifetime-Free Score Checks

OneScore offers users access to Experian and CIBIL credit scores and reports. This helps them stay updated on:

• Any fraudulent loan or credit card opened in their name
• Any mismatch in their personal or professional details
• Any incorrect data, such as closed accounts marked as open
   

If users find any errors, they can raise a dispute directly through the OneScore credit score and loan app. This is especially useful when timing matters.

For example, if the user spots an unauthorised loan account in their CIBIL report, acting quickly helps them prevent further damage to their credit score. With just a few taps, they can report the instance to CIBIL.

 

• Improve Score with Personalised Insights

The app also offers practical suggestions based on users’ credit behaviour:

• If one misses EMIs, OneScore will remind them to pay on time
• If one overuses their credit limit, the app will suggest a spending limit
• If one is applying for many loans around the same time, the app will caution them
   

• Plan Ahead with the Score Planner

OneScore’s ‘Score Planner’ feature lets the user set a credit score target and a timeline. For example, if one needs a CIBIL score of 750 within 6 months to apply for a personal loan, the Score Planner guides them with actionable steps.

Get a Quick Personal Loan from OneScore

To make the whole process a one-stop solution, OneScore also offers personal loan of up to Rs 5 Lakhs. It is available with minimal documentation and instant disbursal to meet urgent financial needs.

Using this credit score and personal loan app, users enjoy benefits like

• Instant disbursal after a quick application
• No usage limits
• 100% digital process
• Flexible repayment plans that fit multiple budgets

Users can qualify for the loan with ease by meeting simple eligibility criteria, such as:

• Credit score of 730 or above
• Minimum monthly salary of Rs 20,000
• Valid Aadhaar and PAN card for ID proof

The table below provides OneScore’s details of the lending partners and their offers:

Lender	Tenure	Interest Rate	Processing Fees
Federal Bank	6–48 months	12.5% – 18.5%	1.5% – 2.5% (Min Rs 999)
South Indian Bank (SIB)	6–48 months	15.9% – 16.8%	1% + Rs 750 + GST
Kisetsu Saison Finance (KSF)	6–48 months	13.5% – 29.99%	1% – 4%

A good credit score can be the key to getting a favourable personal loan. Even if a user’s score is low, it’s never too late to build better financial habits. A strong score offers many benefits and makes managing credit easier today and tomorrow. To get started on their journey to turn loan rejections into approvals, users can download the OneScore App today!

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