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
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
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
Failing to repay a personal loan can lead to significant financial repercussions and negatively impact your credit score. Furthermore, the failure to repay your loan can lead to unnecessary stress. Waiting to communicate with your lender after missing a payment only compounds the anxiety over time. Here are some of the key consequences: Impaired credit … Read more
Personal loans can be backed by collateral, allowing you to borrow money from a lender by using an asset you own as security for the loan. The collateral serves as a guarantee for the lender. If you are unable to repay the loan, the lender has the right to take possession of the collateral to … Read more
Credit cards: Revolving credit Personal loans: Instalment credit With a credit card, you are approved for a credit limit, and you can borrow up to that limit multiple times as long as you make at least the minimum payment each month. Interest is usually applied to any remaining balance at the end of your billing … Read more
There is no set minimum credit score needed to secure a personal loan. Nevertheless, many lenders typically favour scores between 720 and 750. Such scores indicate responsible credit management and a higher likelihood of timely loan repayment. Even with a lower credit score, you might still qualify for a personal loan but expect a higher … Read more
Paying off debt is vital to maintain a good credit score. However, it is a responsible financial management that leads to a good CIBIL score. Therefore, a borrower must take some steps to ensure that credit score stays healthy and sound. These steps include monitoring your credit report from time to time, timely bill payments, … Read more
Credit mix refers to the variety of credit accounts you have on your credit report. These include car loans, credit cards, student loans, personal loans, among others. Having a diverse mix of credit accounts shows to lenders that you can handle different types of credit in a responsible fashion. Impact on credit score Credit mix … Read more