Does a Personal Loan affect your Credit Score?

Does a Personal Loan affect your Credit Score?

A personal loan is a very popular financial product. So many people get a personal problem to get over the financial issues as personal loan affect your credit score. A personal loan provides you with instant help. You can get a personal loan very easily and very quickly. It’s not that difficult to apply also. You can apply for a personal loan online. But does a personal loan affect your credit score?

There are so many banking and non-banking financial organizations in India that provide a personal loan. There are some eligibility criteria to get a personal loan that you need to satisfy to get a personal loan.

1. Your age should be more than 21 years.
2. You should be earning. Whether salaried or self-employed but with some proof.
3. Your credit history needs to be good.
4. You can check your personal loan eligibility by clicking on the link.

If you are eligible then you will get a personal loan very easily. But there is one thing to be noted that a personal loan can affect your credit score and it matters a lot. If you are wondering that Does a Personal Loan affect your Credit Score? then, Yes, A personal loan can affect your credit score in both a good and bad way. Let us discuss them one by one.

Does a Personal Loan affect your Credit Score?

In a Good Way

A personal loan can be very beneficial to us if we deal properly with it if we have paid all our debts properly than it will increase or boost up our credit score. And the credit score is very important in our financial life. If your credit score is good you will get all the financial services very easily. Sometimes if your credit score is not good then a personal loan is the best way to improve it. But for that, you need to deal very decently with your loan.

In Bad Way

A personal loan can boost your credit score in the same way a personal loan can destroy your CIBIL score as well. If you are not paying all your debts on time, you are not paying your EMI’s on time your CIBIL score will be ruined. And once this happens you won’t be able to get other loans or other financial services in the future. This is going to affect your financial life very much because each and every bank and non-banking financial company gives your records to CIBIL. CIBIL is a credit information company. It helps us answer the big question that the Personal Loan affect your Credit Score and keeps the records of debts of all the customers.

So you are always suggested to get a personal loan that you can pay. This is the only way to keep your CIBIL score good.

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