If I have a good credit score, will I surely get a loan or credit card?

Credit History

A good credit score alone does not mean a person will get the loan he wants. Lenders additionally look at the status of previous loans and the repayment history on such loans. A previously settled or a written off loan is likely to impair the ability to avail more loans. Credit history, outstanding loan value, loan types, recent credit events, etc. affect one's credit score.

A good CIBIL score is necessary for successful processing of your loan or credit card application. A good CIBIL score shows potential lenders that you are a reliable customer. But it does not necessarily mean that you are loan eligible. A good CIBIL score can carry you only so far. There are a few factors which might affect your credit card or loan application, despite having a good CIBIL score.

The major reasons why your loan gets rejected even if you have a good CIBIL score:

  • Imbalance between income and expenditure: When you are requesting to borrow, your income matters a lot, because you must generally show some sort of ability to repay. So, the more your loan amount requirement, the more your income requirement. Even if you have a good CIBIL score, your repayment capacity will be taken into account, and hence, having a good income becomes a vital factor.
  • Having too much of debt:: Having too much of debt can negatively affect your credit worthiness, especially if you are applying for a mortgage. In this case, lenders look for existing debt obligations and they subtract it from your income. Having a high debt-income ratio might get your application rejected.