3 Tips to Improve Your Credit Score Before Taking a Personal Loan - Loan Trivia


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Friday 24 August 2018

3 Tips to Improve Your Credit Score Before Taking a Personal Loan

A Personal Loan is perhaps the most popular unsecured credit option available in the market today. Plus, it is also the handiest credit tool which can be used in almost all kinds of a financial fix. A Personal Loan comes with end usage flexibility which allows the borrower to use the money for almost anything and in anyway they desire. Having said that, you can leverage from the lucrative advantages only if you can get yourself approved for it first. And those who have done it before are aware that it’s no easy-peasy task. First and the foremost requirement is a great CIBIL score and an unblemished credit history. If your CIBIL rating is good then there is a chance of getting the lower interest rate on Personal Loan from lenders. To be honest, this is likely to be missing in case of a majority of Personal Loan applicants.

Must Read: Choose Personal Loans for a Shorter Tenor?

Taking a cue from the same, here are some tips on how to improve your CIBIL score before applying for a Personal Loan.

1) Ensure a mixed credit portfolio
Almost 20-30% of your score depends on your credit behavior. Hence, taking just one type of loan (secured or unsecured) can be extremely dangerous for your creditworthiness. Avoid such behavior and ensure a mixed credit portfolio. Apply for secured and unsecured Personal Loans after regular intervals.

2) Avoid when it’s not necessary
Taking a Personal Loan definitely improves your CIBIL score but taking it too many times without any reason can backfire on you. Apart from that, it also highlights your credit hunger behavior which may get you blacklisted. Hence, avoid taking a loan when it’s not necessary.

3) Make a repayment strategy and pay bills on time.

Last but not the least, make a calculated repayment strategy to ensure timely EMI payments.

Read Also: 3 Simple Ways to Improve your Credit Score before Applying for a Personal Loan

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