8 Reasons Why Your Loan Gets Rejected

6. Maintain Good Record of Credit Card or Loan Repayments

It’s very important to pay all your credit card debts on time. If you don’t pay your EMI’s for months together, it will negatively impact your credit score.

When you approach a bank for a loan your credit score and your loan repayment track are the most important things that your bank will strongly consider. Apart from this, your mobile phone bills, your tax payment, and your insurance premiums are some of the other things that will join the list. So, always keep a good record of your bills and credit repayments.

7. Loan Guarantor to Someone Who Didn’t Pay Up

Before you sign to someone as the loan guarantor there are certain things that you should consider.

Make sure that the person you are signing for surety has the ability to repay the loan. Incase if that person fails to repay the amount, it is you, who will be responsible to pay on their behalf. And if you are not able to pay these debts on time you will have a negative effect on your credit score. So unless and until you have a strong reason to believe him, do not sign at any cost.

Also Read:

4 Things You Should Not Hide From Your Financial Adviser

5 Must Follow Money Tips for Teenagers