Need to maintain a good credit score!
Need to maintain a good credit score, What is a Credit Score ?,
Today personal loans are used to raise money for any financial needs such as higher education, medical emergencies, travel, car and marriage.
Personal loans have increased significantly in recent years, however, individuals must meet certain eligibility criteria to obtain such loans.
Credit score is one of the most important criteria for an applicant to get a personal loan under favorable terms.
Financial institutions determine an applicant’s creditworthiness with the help of their CIBIL score.
The CIBIL score is a 3 digit number between 300 and 900, which is based on an individual’s credit history.
In short, loan eligibility depends on the CIBIL score. Loans are easier to get if you keep a good score.
How to improve your credit score.
1. Make your payments regularly. Repayment of arrears will significantly affect the Sibyl score of the borrower. So close the EMI exactly.
2. Limit or stop your credit usage.
3. You can improve your credit score by reducing your debt.
4. The Sibyl score required for personal loans is 750, however this varies between lenders.
5. Choose a longer term in terms of loan, which reduces the EMI amount and helps individuals to perform better in their payments. Keep in mind that interest rates also increase when choosing a longer term.
6. Can be considered as secured credits like home loans and unsecured credits like business loans and personal loans.
7. Check the errors in your CIBIL report and correct them. Sometimes mistakes in updating a borrower’s credit record can lead to a person’s credit score declining, and borrowers should periodically check their credit report to ensure this.
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