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Ask Us: Getting A Second Personal Loan Possible With Debt?

3 Ways to Get Approved For a Personal Loan

Getting A Second Personal Loan

Every week we get lots of great credit questions from our readers, here is an interest question about personal loan eligibility from reader Abhi.

 

Hi

In relation to my query on cibil score

I want to know about my eligibility for pl

I have 3 credit card citi bank 75000 outstanding 40000

HDfc 40000 limit and I paid 40000 no dues

Sbi 28000 limit no dues

Personal loan of 50000 where 20000 is remaining

I m salaried in citi bank

My salary is 32000

And I am going to close my 2 credit card HDFC AND SBI

CAN you say me I am eligible for personal loan

Abhi

Hello Abhi!

Before we consider your personal loan, I must advise you that it is NOT wise to close your HDFC and SBI credit cards unless you have a very good reason to. Having open credit cards, especially paid in full accounts like your HDFC and SBI accounts, is an excellent thing to have. This means you have available credit which you are not using, which shows financial responsibility and gives you an excellent credit utilization ratio. Credit utilization ratio is the amount of available credit across all your cards compared to your total outstanding balances of those card. The lower the use, the better. Having a low credit utilization is a big factor in determining your CIBIL score, so if you want to keep your score as high as possible, do not close those 2 accounts.

Regarding your personal loan, you already have a personal loan with 20000 remaining. You also have quite a bit of debt on your Citibank card. However with the details you have provided here, I would say you would likely qualify for another personal loan considering your salary VS outstanding debt. Of course this would depend on the amount of loan you are seeking. My advice is to first work with the bank your current personal loan is with.

They have seen you responsibly pay down your current loan so you may be able borrow more money with them at a favorable rate. Check your options with them first before seeking a personal loan from a different bank, because a new bank will cause a hard pull on your credit report upon application, and it’s good for your CIBIL to keep those to a minimum as well.

If you have a credit question for us, please send it to us here at Ask CreditSmart and we will do our best to get back to you soon!

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