If you are someone who is having a CIBIL Score but not a good one then you may need to rebuild your score if you wish to get credit in near future. Amazingly, reconstructing your credit score isn’t that difficult nowadays by following some simple measures such as reviewing your CIBIL report regularly, paying your due bills on time etc might help one to improve your CIBIL score.
If you want to improve your CIBIL Score, there are two ways following which you might rebuild your credit score i.e. by applying for either Credit Cards or Personal Loans. Usually, credit cards carries are the most convenient option but they come with a higher rate of interest. Therefore, improving your credit score with personal loan is a better choice as compared to credit cards.
Whenever you apply for a personal loan and pay it back within due time, such behaviour pattern reflects on to your CIBIL report. Improving your CIBIL Score using Personal Loans is very easy as well as important to improving your CIBIL Score. This is possible when you pay your personal loan on time. Doing this will enable you to expect positive remarks on your CIBIL report, which would show a positive bearing on the CIBIL score in the long run. Improving credit score with personal loans is one of the easy ways to fix your poor credit score within a shorter period of time.
Benefits of Improving Credit Score with Personal Loans
Individuals having a poor credit score usually find it very difficult to avail credit to meet their financial requirement, but despite having a bad CIBIL Score one may qualify for a personal loan from the short term loan providers who do not rely much on the credit reports like the traditional lenders, they rely on the repaying capacity of the borrower to pay for the loan taken or applied.
Applying for a personal loan allows one to have instant access to funds in a much faster and easier manner as compared to other types of conventional loans. In fact, some of the short-lenders could give you instant access when you apply for the personal loan with them to meet your emergency requirements.
Points to keep in mind while improving your credit score with personal loans
1) Do not apply for multiple personal loans at the same time. As doing this will create a negative impact in the eyes of your lender making them feel like you are hungry for credit thus affecting your credit score negatively
2) Always try to review your personal loan agreement beforehand before agreeing to its terms and conditions. If you find something which you were not told before applying for the loan, contact your lender immediately and get your agreement modified
3) Always try to pay your due EMIs on time and try not to foreclose your loan so that you get enough time to raise your CIBIL Score
4) You may also make use of credit cards to rebuild your credit score. But make sure that you do not forget to pay your monthly credit card bills well on time as not paying them on time will cost you huge.
Improving your CIBIL Score is quite easy using personal loans as compared to credit cards as they bear a higher rate of interest. So, it is advisable to go through both the options if you are looking to rebuild your credit score.
Related Article: How your CIBIL score can affect your loan application