Lenders assess credit bureau scores before approving personal loans or credit cards. A credit score of 750 or higher is considered reputable. It reflects reliability and integrity in repayments.
How to boost your credit score effectively?
To boost your credit score effectively, you should follow the given steps diligently:
What are the benefits of a high credit score for personal loans?
The following are the benefits of a high credit score for personal loans:
Note: The credit scores discussed above are illustrative in nature. These scores differ from one credit bureau to another and depend on a host of different factors, such as repayment potential, length of credit history, and credit utilisation, among others.
Before applying for a personal loan, aspiring borrowers should consult a certified financial advisor for proper guidance. Not only this, but one should also clearly understand the risks associated with personal loans, such as high interest rates, complex repayment clauses, and high processing fees.
In conclusion, smart borrowers should utilise personal loans strategically to manage their debts and establish a strong credit foundation, thereby securing better loan terms and easier access to credit in the future.
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Disclaimer: Mint has a partnership with fintech companies to offer credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article aims to educate readers and raise awareness about the essential needs for credit, including loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with risks such as high interest rates and hidden charges. We advise investors to discuss with certified experts before taking any credit.
