A Low Credit Score typically indicates that an individual may have had difficulties managing
their credit responsibly in the past. In the context of credit scoring systems, a low score is
generally considered to be a score below 650. A low credit score can have both positive and
negative implications, though the negatives often outweigh the positives.
Reasons for a Low Credit Score:
The following are the top 5 reasons for Low Credit Score:
1.Late or Missed Payments.
2.High Credit Utilization.
3.Defaults and Write-offs.
4.Frequent Credit Inquiries.
5.Lack of Credit History.
Pros of Low Credit Score:
1.Limited Temptation for Credit: With a low credit score, getting approved for new
loans and
credit cards can be challenging. This might help in avoiding unnecessary debt accumulation.
2.Focus on Financial Management: A low credit score can serve as a wake-up call to improve
financial habits, encouraging better budgeting and financial planning.
Cons Low Credit Score:
1.Higher Interest Rates: Lenders often charge higher interest rates to individuals with low
credit scores to compensate for the perceived higher risk.
2.Difficulty in Obtaining Credit: It becomes harder to get approved for loans or credit cards,
limiting financial flexibility.
3.Limited Housing Options: A low credit score can affect rental applications, as landlords may
view it as a risk factor.
4.Impact on Employment: Some employers check credit scores during the hiring process
potentially affecting job opportunities.
How Omozing makes a difference?
Omozing, as an NBFC, helps individuals with low CIBIL scores by using flexible credit
assessments, offering personalized loan solutions, and providing manual reviews of applications.
This approach allows them to cater to borrowers who may be overlooked by traditional banks,
giving them access to needed funds and a chance to improve their creditworthiness.
Customer stories
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