How can my credit score impact the calculation of my loan amount?

There are ample factors that affect your loan amount. However, credit score is a direct impact before your loan approval is granted. Credit score can either help or affect your instant personal loan. Buddy Loan is one of the loan aggregators that will help you enhance your credit score with vivid repayment options, Instant Personal Loan

Your financial behavior will chain your financial plans to help build credit score. Here are some key factors you will have to consider before availing an instant loan.  

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Income liquidity: This factor can assess your capacity to repay an instant personal loan. It is one of the assurances you can give your lender for repayment.

Age: It is important you are under the brackets of this eligibility criteria to avail a personal loan easily. If your age exceeds the criteria, your loans will be easily rejected.

Job instability: If you are repeatedly changing jobs it could be difficult and can even reject your financial institution. 

 

With all the primary factors affecting your loan approval, let us understand how exactly availing a loan affects your loan approval.  

·         Nobody wants to have a bad credit score before lending the loan. Any default I payments, check bounces, etc can easily push you tot the least end of credit score.

·         In such cases, there are high chances of your loan application getting rejected.

·         The lower the EMI, the longer the tenure. But your payments are spread across the full tenure which will help you, if you’re drawing low salary. It will increase your credit scores.

·         Financial bodies and credit brokers sort the loan application by having a record of it. They would asses your application with the history and either decline or approve the loan application.

·         It is advisable to apply a loan only when in dire need than over using for unnecessary or small reasons.

Buddy Loan offers disburses loans stating from Rs. 1000 to Rs.15 lakhs. 

 

How exactly does applying for a loan affect the credit score?

By now, you know that availing any personal loan will affect your credit score. If you avail a loan with an outstanding debt at hand, you’re in a soup.

Credit scores and its’ agencies list your financial activity. Hence, a healthy financial behavior is always recommended.

It is like your overall average wouldn’t make a big difference with a new loan all at once. So, it is a journey of years that can create a good credit score. Paying on time, no bounces, and of course not defaulting the last EMI.

Thus, the impact of new loan will be less on the credit score. The easiest and best way to keep a personal loan from lowering your credit score is to make your payments on time and within the tenure of the loan stated.