7 Important Facts You Must Know about Personal Loans
by credit bazzar Instant payday loan in as short as 15 minutes
Now a days as the internet is making their path to online marketing,
transactions and many other things in financial sectors taking a personal online
loan has become easier than before. But we don’t know other factors which
also come with taking personal loans and all of us must know these:
1. Boost Your
Credit Score with Personal Loan
If you smartly use a
personal loan then it can boost your credit score. It will be smart if you fuse
all debts of your credit cards and pay every month via a personal loan. Along
with simplifying your finances it will improve your credit also.
2. Credit Bureaus
Can Do Mistake
Credit bureaus sometimes do
make blunder. Sometimes there are old debts which you have already paid still
remains or you are carrying a debt which is not yours but of some other person
with similar name. Even you can get same credit debt report for many times. No
need to stress if you know you are paying timely with accurate amount.
3. Take Help from
Credit Utilization Ratio
The credit utilization ratio
compares your available credit amount with the exact amount of credit you are
using. Potential lenders take note of these. The ratio should be low even if
you pay your loans regularly and on time. Prospective lenders check if their
customer’s this ratio is low. Keep a consistent and also ideal low ratio which
must be lower than 30%.
4. Credit Cards,
Personal Loans and Their Differences
Credit cards can be used
multiple times if you repay the debts in full or in installments over a year.
Whereas personal loan is one big loan you get beforehand and then repay it in
small portions every month for a certain period of time. So, it is best to do
large-scale purchases through personal loans. You will have to pay less
interest than with your credit cards.
All Credit Card Debts with One Personal Loan
Sometimes it gets
overwhelming to keep track of so many of high-interest debts, hence it is best
to take one loan that covers all your requirement and you can repay faster and
also save some money as there is one interest rate and you can pay per month
balancing your other financial things.
6. Look for Best
Lender Before Applying
There are many lenders
available who give personal loans. But it is important to choose the best
lender before you take your personal loan. You must also make sure you take one
loan at a time because the best lender will check your credit score before he
or she approved your application. Credit score drops whenever you take a
personal loan and it will reflect on your credit report for 2 years.
7. Stick to a
Make a budget and then stick
to it strictly. You not only will save some money but also will realize where
you are spending it unnecessarily. It will be able to keep track of your
finances. You can also use some apps for that. Ensure that the personal loan
which you are going to take can fit in your budget of every month because you
have to repay every month.
Created on Aug 8th 2018 01:09. Viewed 348 times.