Bored? Tired? Fed up with the routine? Need a break? Oh! Then let’s catch break by using your hard-earnedcredit score to do the same. Let’s go on trip to calmness and peacefulness.
Now you need not worry about the financing of such holiday trips when you have options of personal loan serving you to the best. There are banks, financial institutions, NBFCs and online lenders that provide variety of personal loans at flexible conditions.
What is a credit score
Credit score is the score that determines your ability to repay any credit. This answers the question, how likely are you to pay offyour loans. It is a three-digitnumber ranging from 300 – 900. And 600 being the most considerable credit score. All the banks consider 600 to be a good score for accepting loan applications.
A credit score from 750 to 900 is considered to be a very good credit score. With such credit score any applicant can avail loans at cheaper interest rates.
Whereas a credit score from 300 to 620 is low credit score. Lenders may think twice before giving you any kind of loan. At this stage you will have to convince the lender to lend you some money.
A high credit score gives you a benefit to negotiate for lower interest rates compared to others for any loans. There are bureaus for the calculation of credit scores just like CIBIL. These agencies calculate and gives you the credit score to be submitted while applying for loans or credit cards. While calculating credit score the agency takes into account the credit history of the applicant, repayment records, dues, credit enquiries, etc.
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Personal loans are the loans which are unsecured loans. This is because personal loans do not require any asset as collateral.The credit score can not only be used for getting low interest rates but also for various reasons.
- Know your credit cards
Do you have any idea what your credit cards have to offer you as rewards or perks? If no, then it’s time for you to know what you deserve. When you know the perks, you can use it for your dream vacation.
- Easily accessible
Personal loans for your needs are easily available than any other sources of funds. Also,less documentation and fast processing helps give advantage. Here, in this case CIBIL score plays an important role to receive the loan immediately.
- Cheaper than credit card
Credit cards usually bare a very high interest rates from 15 to 40 percent annually. However the interest rates on personal loan range from 8 to 13 percent. It is clear that personal loans are cheaper.
- Unsecured personal loans
With a good credit score, you easily get access to personal loans but however without a good credit score you can still avail personal loans.