When falling short of money or want to improve your CIBIL score, seek financial support from different credit schemes available in India. Accordingly, taking a secured loan can be the best option.
Why secured loans?
Secured loans offer low-interest rates with a higher loan amount. On the other hand, an unsecured loan is provided at a higher interest rate and with limited loan amount based on an individual’s credit score. Besides, taking a secured loan and repaying it back promptly helps in improving one’s CIBIL score.
Credit Score with a Secured loan allows an individual to get a higher loan limit along with the best tenor. CIBIL score is the base for the lenders to determine the loan eligibility of the application and basis on which they reject or approve the loan application.
Effective ways to Increase Credit Score
Prefer lower loan-to-value ratio: The ratio is determined based on the credit score and risk assessment. In order to build a credit score, it is best to accept the lower loan to value ratio. This ensures a quick approval of the loan and easily builds the credit score.
Look for the co-applicant or a guarantor: When looking to improve the Credit Score with a Secured loan, it is best to improve your chances of repayment. Co-applicant such as a spouse who has a good credit score definitely increases the chance of loan approval and a boost of the credit score. This addition in income helps to easily clear the loan amount.