What life may hold in the future is very uncertain. We may require a huge amount of money for purchasing a house or an automobile, or it could be for emergency medical expenses as well. Thus, successfully getting a loan is a matter of how healthy your CIBIL credit score is. The health of this score depends on how well your financial habits have been in the past. In case you want to have a better idea about how to keep yourself financially stable, here are the 5 habits to help you improve your chances of getting a loan.
5 Tips to Get Easy Personal Loan Approval
Research Your Lender Well – Apart from the measures mentioned above to have a healthy CIBIL score-card, it is also crucial that before applying for loans, one should research from at least 3-4 different lenders. Compare their schemes, payment options, any pre-payment charges, the rate of interest, collateral. Once a lender is finalized that aligns and resonates with your financial circumstances, then it would actually be helpful and easier to return back the loans in the future without worrying about any negative impact on your financial health.
On Time Bill Payments – To begin with, an on-time payment of bills and EMIs is a good and simple way to start improving your financial health. Every month, there is a mountain of bills to pay and once they are all paid in due time, it helps an individual to better manage his finances with his savings and also improves his credit score thereafter.
Credit Card Repayments – A credit card is another way to ensure that your credit CIBIL score boosts up. For one time big purchase, a loan is taken; however, for small purchases and bill payments every now and then, we can make good use of credit card. It has rewards as an additional bonus. Once, the credit card bill comes up, paying it on time is an excellent way of improving and sustaining your financial health. As a thumb rule, do not spend more than 30% of your credit card money, else it can become difficult to pay the entire amount before interest rate charges kick in.
CIBIL Score – You must be wondering that how to check whether the financial habits that you have to follow is bearing any fruits or not! Well, here comes the importance of CIBIL score. The CIBIL score ranges from 300 to 900, so the higher the score, the better your financial stability. A score of 750 and above is considered an ideal score.
Also read: How to Improve Your CIBIL Score and Why It Matters
Number of Loans – It may happen that you maintain a good score-card, and successfully get a loan, but that is not the end of the story. After so much of efforts, some can get carried away and apply for multiple loans and eventually over-burden their own pockets at the time of returning the same. Hence, patience is also an important driver in such cases.
Apply only when it is absolutely necessary to have a loan. Also, when a loan is going on, check your household monthly financials before applying for another loan. Repaying your loans on time is also a concrete way of getting bigger loans in the future.
