Know the Importance of a Good Credit Score for Getting Loans

Arundhati Nautiyal

The loan can be used by borrowers for any purpose

Personal Loan | Source: Social Media

When granting a personal loan, lenders take risks. If a borrower is unable to repay the loan EMIs on time, lenders may lose their money

Personal Loan | Source: Social Media

Conducting a credit check helps lenders do just that, giving them a complete view of the applicant's credit history

Personal Loan | Source: Social Media

Therefore, it is important that lenders ensure that they have a good record and a high score when applying for a loan

Personal Loan | Source: Social Media

Most instant loan apps require a score greater than 700 to consider borrowers' applications

Personal Loan | Source: Social Media

As soon as the score reaches close to 900, it becomes easier to get a loan

Personal Loan | Source: Social Media

Credit scores depend on the credit activity of the user, they can also go down due to fraudulent activity

Personal Loan | Source: Social Media

If there are any unauthorized loans or credit cards in the name of the borrower, their credit score will be affected

Personal Loan | Source: Social Media

To keep the credit score correct, the credit utilization ratio should be kept below 30%

Personal Loan | Source: Social Media
Delicious Schezwan Noodles Recipe: Perfect for Kids