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 the credit score. When you go for any financial work, a credit score impacts a lot on your profile as it expresses expenditure habits, borrowing and 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 be 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, make the repayments timely that 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 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!