ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you are unable to maintain a balance between secured and unsecured loans, lenders will consider you an applicant with credit-based debt, which might result in the rejection of your loan application.

Detailed explanation-2: -Along with many other pieces of information, potential lenders, and creditors – including credit card companies, mortgage lenders and auto lenders – may use your credit scores and credit history to help make lending decisions. These companies want to know how likely you are to pay the money they lend back as agreed.

Detailed explanation-3: -Some reasons your loan application could be denied include a low credit score or thin credit profile, a high DTI ratio, insufficient income, unstable employment or a mismatch between what you want to use the loan for and the lender’s loan purpose requirements.

Detailed explanation-4: -Your credit history is one of the many factors that can affect your ability to get approved for a mortgage and a lender can pull up one of your credit reports to see financial information about you, within minutes.

Detailed explanation-5: -Is it possible to get a loan with no credit? Yes, it is possible to get a loan with no credit or bad credit, but lenders will likely charge you a higher interest rate than if you had established credit history.