How a personal loan can boost your credit score

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How a Personal Loan can boost your credit score
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• A personal loan can be a real life saver in times
  of need.
• This loan can help you pay off debts, fund and
  education, make home improvements, or fund a
  medical procedure.
• Applying for a personal loan online is super easy
  too.
• All you need is your proof of identity and a few
  bank details.
• One crucial thing you need though is a good
  credit or CIBIL score.

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• For borrowing money from a bank, the most
  important fact that they take into consideration
  is your credit score.
• Your credit score is a three-digit number ranging
  between 300 and 900. It is a numerical expression
  of an individuals creditworthiness.
• It tells your bank about your eligibility and
  your capability to repay the loan.
• Your credit score is determined through an
  analysis of your credit files such as credit card
  payments and loan accounts.
• Generally, a credit score of 750 and above is
  said to the ideal score for getting a loan or a
  credit card approved.

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• When you take a bank loan your credit score is
  affected. But taking a personal loan the right
  way can also help you improve your credit score.
  Heres how to do it.

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Give it a thought
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• Before you apply for a personal loan online, give
  a thought to the amount youre asking for.
• Your income to debt ratio should always be
  positive.
• Apply for a loan that is well within that range.

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Dont apply too much
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• Dont take or seek too many loans at the same
  time.
• If for some reason your loan application gets
  rejected, refrain from immediately seek another
  loan.
• Your applications too are reflected on your
  credit score.

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Get the right loan offer
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• Choosing the right personal loan is a crucial
  step towards a good credit score.
• A loan amount and an interest rate that you can
  easily pay off with your monthly income will
  ensure that you dont default or Miss EMI
  payments.
• Timely repayment of your loan has a big impact on
  your credit score.

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Pay your EMIs on time
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• Never miss your EMI payments as missing even a
  single payment can have an impact on your credit
  score.

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Dont prepay your loans
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• Although prepayment of personal loans is good for
  the customers, it can reflect badly on your
  credit score.
• It reflects badly on your long term
  creditworthiness.
• So even if you come into a huge amount of money,
  use it to pay EMIs in bulk instead of prepaying
  your entire loan.

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Thank You