Is a credit score can affect your Loan Application?

  • Surprisingly, some future buyers don’t bother with their credit score and never review the previous reports before submitting a loan application. They seem to be quite confident and assuming that their scores are high enough to qualify. While on the other some of the loan applicants never consider the possibility of identity theft as they try to misinterpret the facts. However, nothing will work in this situation and a low credit score or your false statements will put loan application dead in its tracks.

    A credit score is something that is the utmost requirement from a lender and keeps one thing in mind that your credit activity has a major impact on the approval or rejection of your application. The requirement for a credit score is necessary on a personal loan for expatriates as well as for locals but it may vary from one bank to another in UAE. In addition to higher credit score requirements, you need to work responsibly. You must avoid several missed payments, frequent withdrawals from your account, and most important you don’t need to make derogatory credit information.

    All of the above-mentioned lacking can stop your loan approval. While the other situation is to pay your bills on time, lower your debts by managing your inputs and outputs, and stay on top of your credit report. With early planning, you can manage to clean up your credit history and fix your faults and errors to get a good credit score.
    What expatriates can do to get the best rates for a personal loan in UAE?

    They can first build their good credit history and then try to follow these tips:

    • Choose a unique bank with good repute in the town. I would suggest you approach your nearest bank so that to recover your issues by visiting the branch. Although the selection of a unique bank is quite complex you just need to get good rates.

    • Further, you need to look into your application and try to manage the required loan amount. I am sure some of the lenders will be agreed to offer you the maximum loan amount, in case you have a good credit history.

    • The most difficult part is to manage personal loans interest rates because some of the banks will offer you affordable rates but some may charge you high.

    These three points are necessary to be noted but requirements for getting a personal loan often change. You need to save some cash at your end and if you are considering applying for a loan shortly, try to manage the extra amounts through your savings. Having some reasonable amount in your account while walking into a lender’s office will help you to portray your application persuasively. This will increase your chances to get your loan according to your terms and convince your lender for a maximum amount.