Personal Loans are unsecured loans which are provided by various lenders that are a great finance option. They do not have any restrictions pertaining to their end usage, have attractive interest rates, and offer great flexibility of repayment. It can even better your CIBIL score in the long run. Here’s how you can do that -
Credit Card Debt Consolidation
If you have outstanding debts on your credit card, then not only can it affect your credit score but if you miss your payments, you will be slapped with heavy fines. There will also be an accumulation of interest rates that are applicable. In such a scenario, it is best to consolidate all your debts into a single loan. This way you just have to make one payment and that too at a lower interest rate. This not only reduces your expenses but also improves your credit score.
Maintaining Credit Portfolio
To have a great credit score, you must always ensure that your credit portfolio has a mix of both secured and unsecured loans. If you only have secured loans, you should opt for a personal loan as this will balance out the ratio. It will bring about a positive change in your debt profile, help you obtain attractive interest rates with minimum fee and charges. All this will help you pay out your existing loans faster.
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