Why your personal loan request can be rejected even with a 750+ credit score? 5 reasons you should know

A credit score of 750-775 is generally considered good and can improve your chances of getting a personal loan. However, a high credit score alone can not guarantee approval as many other factors, such as existing debt and repayment capacity, are assessed by the lender during the disbursal process.

Credit bureaus such as TransUnion CIBIL assign all banking customers a credit score ranging from 300 to 900. A score below 650 signals higher credit risk, while scores above this level indicate moderate to good creditworthiness.

Borrowers can check their credit score on portals like CIBIL, CRIF, Experian, or Equifax. They can access one free credit report every year from each of the four bureaus licensed by the Reserve Bank of India (RBI).

Common reasons for loan rejection

A score of 750 or higher typically reflects a strong credit profile and a consistent repayment history. Here are some reasons why your personal loan application can be rejected despite being in the high credit-score category, according to a blog post by IDFC First Bank: