Personal loans are a very useful tool when one needs urgent financing to fund immediate requirements. One can use a personal loan to fund any type of requirement – such as funding education, organising a wedding, a family vacation, debt consolidation, medical emergencies, and so on. You can easily get a personal loan, providing you meet the necessary eligibility criteria. One such criteria is credit score.
A credit score is a 3-digit number between 300 to 900 assigned to every individual based on their credit transactions. Since personal loans are unsecured, every lender assesses the creditworthiness of an individual depending on their credit score. These scores are assigned by agencies called credit bureaus. Every financial institution provides transactional information (credit related) of each customer to the bureaus, who then analyse the data and come up with a credit score. The most commonly used credit score in India is CIBIL score, issued by TransUnion CIBIL.
Unfortunately, due to some misconceptions or “myths” that are prevalent, some people may make mistakes when it comes to their credit behaviour or while applying for a loan. The above infographic busts 9 such common myths in a nutshell.
Fullerton India offers personal loans upto INR 25 lakhs* at attractive interest rates with flexible tenures between 1-5 years. Apply online today.
*Terms and conditions apply.