Personal loans play an important part in the financial landscape, providing individuals and businesses with the financing they need to fulfill their objectives. Effective loan management, on the other hand, necessitates a complete grasp of the loan lifecycle as well as the use of best practices at each stage. Personal loans are a useful instrument … Read more
A personal loan intended only for central and state government employees is known as a government personal loan plan. Through this program, government employees can apply for personal loans to help them with unforeseen financial difficulties. Benefits and features of government personal loan schemes Banks only provide government employees with government personal loan plans, which … Read more
Missing personal loan payments won’t land you in jail, but it can cause significant financial stress and damage your future credit opportunities. Here’s what can happen: Credit score damage: Late payments can significantly damage your credit score, which is a numerical representation of your creditworthiness. Negative marks from late payments indicate to lenders that you … Read more
A frequent use of personal loans is covering medical expenses, which many people opt for. Here’s the rationale behind this choice: Flexibility: Personal loans offer freedom in expenditure, unlike certain other loan types. This flexibility allows you to address a range of medical expenses, such as hospital bills, treatment fees, medication, dental procedures, or vision … Read more
When you are given a loan’s pre-approval, it usually has a minimal impact on your CIBIL score. This happens because it leads to a soft inquiry rather than a hard inquiry. In other words, loan pre-approval does not influence your CIBIL score in any significant way. Let us understand what is a soft inquiry. Pre-approval … Read more
Maintaining a healthy credit score is vital for financial stability. There are numerous factors responsible for a healthy credit score such as length of credit history and credit utilisation ratio. Additionally, if you are struggling to make payments, consider reaching out to your creditors to discuss alternative payment arrangements or hardship programs. Your bank may … Read more
CIBIL scores reflect your creditworthiness based on your credit history. Banks use this score as one of the key factors in their decision-making process at the time of assessing your loan application. While a high CIBIL score shows that you have a good credit history and are likely to repay your loans on time, banks … Read more
While CIBIL primarily deals with credit information of account holders, it does not directly handle disputes related to fraudulent charges. However, if anything of this sort comes to the fore, it is recommended to place a fraud alert or credit freeze on your credit report with CIBIL. This makes it quite cumbersome for fraudsters to … Read more
Gifted money does not impact your CIBIL score in a direct way. But it can, and does, affect the score positively in the following scenarios: you invest the gifted money into a scheme and improve your financial situation, use the gift received in cash to retire a debt, or use the same to give the … Read more
A balance transfer can help a borrower improve their CIBIL score if used in a smart way. Before that, let us understand what a balance transfer is. It is the transfer of balance (in part or full) from one account to another account usually that charges a lower rate of interest. But it is recommended to … Read more