Monday, October 29, 2018
Monday, October 15, 2018
7 Important Things to Avoid Regarding Personal Loan
Personal Loans are a great a way
to tide over your short term financial need as it requires relatively less
documentation, quickly disbursed and doesn’t require any collateral. The
interest rates these days offered by banks and financial institutions are also
very competitive especially for borrowers with high credit score. But there are certain vital things that one
should keep in mind regarding personal loans:
- Avoid Applying for loans with too many banks: This
is a very important point as not many people are aware of this fact. You
need money urgently and you might be tempted to apply with multiple banks in
case your desired bank doesn’t approve your application. With advent of online
banking, it has become very easy to apply for personal
loan online with several banks. This is a bad strategy in this case. Every
time you apply for a loan with a bank or any financial institution, it will
check your Credit Score on CIBIL. Now with each credit score check your overall
credit score comes down a little bit. Now if some four - five banks check your
Credit Score at the same time it’ll hamper your score in a meaningful way, which
in turn will pose a problem in getting your loan sanctioned. Also lower credit
score result in higher personal loan interest
rates.
- Avoid taking large loan amount: Just because personal loans are structured in such a way that you don’t have to discuss the reasons for taking one, it doesn’t mean you try to get as much as you can. Take only as much as you can afford to repay. Taking a loan amount more than you can afford to repay on time will put you in a debt trap.
Sunday, October 14, 2018
Monday, October 8, 2018
How to improve your credit score through simple snowball effect?
If you are reading this you are definitely
looking for improving your CIBIL score (the most widely used credit score
referred by lenders to hand out the loans) and this article will certainly help
you in achieving this objective specially if you haven’t taken a loan before.
Since you don’t have a credit history the
lending institutions will hesitate to approve your loan application especially
medium to large ticket sized loans for items like Cars, Home etc. Let’s first
understand the range of scores assigned by credit rating agencies and their
grades:
Credit Score Ranges
|
|
Range
|
Grade
|
0 or -1
|
No Credit History
|
550 - 300
|
Bad
|
551-649
|
Poor
|
650-699
|
Fair
|
700-749
|
Good
|
750 and above
|
Excellent
|
If you fall into the first three categories of
the above table, not only there is higher chance of application rejection but
also the cost of loan is going to be higher, which is the interest rate you pay
on the loan amount. The only way to improve your credit score is to make timely
payment on your dues and in short term that can be done either by having a
credit card and paying all its dues timely every month or you can improve yourCredit Score with Personal Loans.
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