Some people are sometimes forced to liquidate their property so that they can pay their bills. When you apply for a Buddy Loan, you need to stay on course while paying for your EMIs because if you default, your CIBIL score gets affected. But if you repay on time, then you get a boost on your credit score.below are the factors that affect your credit score when you take a medical loan.
A medical loan can affect your credit score when:
â¢ You apply for a personal loan
Immediate you apply for an urgent medical loan, your credit score goes lower. Your creditworthiness goes lower because you have acquired a new debt,
â¢ You regularly repay your loan
Regular payments affect your credit score positively, and you will qualify for better amounts next time.
â¢ You miss a personal loan repayment
Losing payment impacts your rating negatively as you are seen to be financially irresponsible.
â¢ You consolidate your debt
Consolidating your debt impacts your credit score positively as it raises your creditworthiness. It is advantageous to the lender to do this as they may qualify for more loans after.
A personal loan that you honour the repayment schedules and finish paying on time has a positive effect on your credit score. The future lenders that you may contact are convinced of your financial responsibility and will, therefore, grant you flexible terms. in a timely fashion can have a positive effect on your credit score, as it demonstrates that you can handle debt responsibly.â
People who are most disinclined to take on the debt could have lousy credit scores. A person who never acquires debt and pays it off in instalments has no payment history.
â¢ In the short term, you may not be able to get another loan or open another credit card.
â¢ Taking out a personal loan can affect your credit score in several ways. But repaying the loan on time will not only bring your credit score back up, but it can also help build it over time.
â¢ Your overall credit rating could temporarily lower when you take a personal loan because you have acquired additional debt.
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Article Added on Saturday, May 2, 2020
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