Personal loans are a great financial tool in times of planned and unplanned expenses. This could be a medical emergency, a product that you have been eyeing for so long, an exotic holiday plan, or renovating your home. But do you know a personal loan has the power to improve your credit score as well? Yes, you heard it right! An instant personal loan can enhance your credit score but when you repay the amount on time. You can pay the loan over the fixed tenure period without affecting your credit score. When you go for any financial work, a credit score impacts a lot on your profile as it expresses expenditure habits, borrowing, transactional history, and many more. There are multiple ways of improving your credit score and one of those ways includes using a low-interest loan to consolidate your pending debts.
Read on to know how you can better your credit score using a low-interest quick personal loan!
Tips To Enhance Credit Score with Low-interest Personal Loan
- Select a loan amount that you can repay within the tenure period without any hassle. But make sure the EMI should not more than 40% of your total income. And also choose a longer tenure period to avoid future complications.
- There are multiple lenders in the market offering different interest rates. Make sure to choose a low-interest personal loan as this will not create much burden of paying more money. At Buddy Loan, you can get a loan ranging from Rs. 10000 to Rs. 15 Lakh at interest starting at 11% onwards.
- To improve your credit score, making the repayments timely will ensure a good credit history in the long run.
- Use the low-interest personal loan to repay your outstanding bills otherwise, it will impact your credit score.
- When you are looking for a personal loan, do not make multiple loan applications as rejections can affect your score and lower the chances of approving the loan. It’s always better to compare and evaluate all the loan offers and finalize the one that will suit your requirements which include eligibility, interest rate, and other parameters.
- Last but not the least, keep an eye on your credit report often. If you see any error, take immediate action.
A low-interest personal loan can meet all your financial needs in a few simple steps. Use a personal loan for any purpose but be sure to repay the amount on time to maintain the credit score. A credit score is a three-digit number, and it expresses the creditworthiness of an individual. Having a credit score above 700 is considered to be good. Manage your finances properly to maintain a healthy credit report lifelong!
Personal Loan Tips for Salaried Individuals
Personal loans can be taken for multiple financial requirements. It might be for home renovation, traveling to a dream destination, medical expenses, or any other emergency, and you can fulfill all these expenditures with an instant personal loan online. If you are a salaried employee, then there is a high possibility that you are frequently approached by various banks, offering pre-approved personal loans. And when you apply for it, the lengthy procedure, massive documents requirement, standing in queue to submit the loan application and then waiting for a long to get approval. But thanks to the latest technology and advancement. In recent times, the lending process has been transformed completely, and become easier to avail of a personal loan for salaried employees. If you are a salaried person and looking for a personal loan online, then this article will help you out. Read on to get a loan faster and hassle-free manner.
- Choose Your Loan Amount Wisely
Before you apply for a loan online, know your requirements and check with the lender for interest rates, processing fees, and other charges. Otherwise, when it will come to repayment, the EMI amount may create a hassle for you. At Buddy Loan, you have the option to choose a loan ranging From Rs. 10,000 to Rs. 15 Lakhs, interest starting at 11% onwards, and a repayment tenure from 6 months to 5 years.
- Check The Eligibility Criteria
It’s always suggested that check the minimum eligibility criteria before you submit your loan application. Because if you don’t meet the criteria, then it will lead your application to rejection which may affect your credit score badly. Do a primary check on eligibility set up by the lender and then go ahead. Buddy Loan offers simple eligibility for salaried individuals – You have to be a resident of India, your age should be over 21 years, need to provide bank statements and salary slips of the last 3 months. It’s easy and convenient to apply for a loan online and get the amount within hours.
- Look For Hidden Costs
There are few banks and NBFCs charge extra for providing a personal loan. So, before you apply, look for the hidden charges and other pre-payment costs with the lender as these charges can increase your EMI amount and create a burden on the monthly expenses.
- Maintain a Good Credit Score
This is a major factor to consider. Every lender checks out the CIBIL score before processing a loan application. Try to improve your score and keep it above 750 for faster loan approval. Pay off your bills and other credits on time to maintain a good score, having a poor score will lead your application to rejection.
These above-mentioned tips will help you to get your loan application faster. If you are looking for a personal loan, apply now and use it for any financial requirement!