In today’s time, credit score helps a lot in taking loan. At the same time, credit score becomes very important in unsecured loans like personal loans. In such a situation, the question arises in the minds of people that how much credit score is required to take a personal loan.
What is the credit score required for personal loan?
Although no minimum limit of credit score has been set by banks and NBFC companies for personal loan, but it is believed that personal loan is easily available on credit score ranging from 720 to 750. The more credit you have, the higher your credit score. The faster you are likely to get a personal loan. At the same time, the lower your credit score is. The less are your chances of getting a loan.
credit score
Credit score is the history of your past financial transactions and through this, companies can easily know how your financial behavior is. Its range is between 300 to 900. The higher the credit score. The better your financial health is considered.
Take these measures to increase your credit score
- Pay on time: If you do not make payments on time or delay your installments, it has a negative impact on your credit score. To maintain a good credit score, you must make all your payments on time.
- Credit Utilization Ratio: If you have a credit card, you should not use more than 30 percent of your credit card limit. If you use more limit than this, it has a negative impact on your credit score.
- Credit Mix: If you take successive personal loans, it can have a negative impact on your credit score. In such a situation, you should always keep your credit mix right.
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