CreditSmart Questions Answered

Why Was I Denied A Loan Without Default History?

Options If Your Personal Loan Is Rejected
Jay Kaul
Written by Jay Kaul

Ask CreditSmart

Sometimes The Reasons Are Unclear

Dear CreditSmart,

Recently, I applied for a loan but the Bajaj Finance refused the request of that loan because of my CIBIL score. However, I have not any default history but the people saying that I dont have good score of CIBIL so how it could happened and what to do to improve the CIBIL score.






Greetings Saifullah,

Thanks so much for your email. I’m sorry to hear you were turned away for a loan, lets see if we can figure this out. There’s many other reasons that would cause your CIBIL score to be low, and you can certainly have a low score without defaulting.

For example, one factor that lowers your score is your credit utilization ratio. If you are using more than 30% of your available credit line and carrying that balance for months on end then your score will certainly dip a bit. Also, have you applied for new credit a lot recently? Multiple inquiries for new credit within a short period of time also can lower your score.

There’s really countless reasons that could be effecting your score, and it sounds like you need to obtain your full credit report from CIBIL or CRIF Highmark so you can identify the exact factor thats lowering your score. It may even be a negative mark in error, so it’s important to look at your full report at least once per year.

Maintaining great credit requires a little bit of work, and you took a great first step by finding us here at CreditSmart.

Best of Luck,


About the author

Jay Kaul

Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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