5 surprising ways your credit score affects personal loan approval

A personal loan is a quick financial solution when you need money urgently - for a wedding, home renovation, medical emergency, or travel. But what many do not realise is how much your credit score silently influences your personal loan approval.

Before you apply, it is important to understand why checking your credit score matters and how a good score can unlock the best personal loan offers available today, especially from digital lenders like IDFC FIRST Bank through its FIRSTmoney smart personal loan platform.

Five lesser known ways in which your credit score affects your personal loan approval:
 

1) Faster approval for high scores
 

If your credit score is 730 or above, your application moves through the system faster. Lenders see you as financially responsible, so they approve your personal loan quicker - sometimes in minutes. IDFC FIRST Bank’s smart personal loan disburses money within 30 minutes once your eligibility is confirmed.

2) Lower interest rates
 

A good credit score means you have handled debt well. Lenders reward this with lower interest rates. For example, IDFC FIRST Bank offers competitive rates starting from 9.99% p.a., but that is often available to those with a solid credit score.

3) More loan amount eligibility
 

Your credit score affects how much you can borrow. A better score increases your loan limit. FIRSTmoney lets eligible customers borrow up to ₹10 lakhs - instantly and digitally - based on their creditworthiness.

4) Flexible repayment tenures
 

Lenders are more willing to offer flexible tenures when your score is high. This helps you pick an EMI that suits your monthly income. With IDFC FIRST Bank, you can choose a loan duration between 9 to 60. You can also choose a comfortable EMI date between 3^rd to 8^th of a month.

5) Access to more loans in future
 

If your credit score is good, you may be offered pre-approved top-up loans without reapplying. FIRSTmoney lets you take additional loans from your approved offer - on demand - without repeating the application steps.

Why does credit score check matters before applying?
 

Before applying, do a quick credit score check. It tells you where you stand and helps you know your chances of approval. If your score is low, take steps to improve it before applying. If it is high, you are likely to get the best deal.

How to apply in five simple steps?
 

Here are the simple steps to apply for IDFC FIRST Bank’s FIRSTmoney smart personal loan:

• Start by scanning the QR code or clicking on the “Apply Now” button on your smartphone.
• Register using your mobile number and confirm basic/personal details to check your eligibility.
• Select the loan amount of your choice based on the offer amount and choose flexible repayment terms.
• Link your bank account where you wish the funds to be disbursed.
• Complete the video KYC verification process by showing your physical PAN card.

Final thoughts
 

Your credit score is more than just a number, it is the key to unlocking better loan terms, faster approvals, and higher limits. With IDFC FIRST Bank’s FIRSTmoney smart personal loan, you can enjoy these benefits digitally, without stepping into a branch. A good credit score makes the journey smoother, smarter, and stress-free.