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5 Steps to Boost Your Eligibility and Get a Quick Personal Loan

· Finance,Personal Loan

Having a bad CIBIL score is never amusing, you get rejected for loan again and again - and that not only hurts your credit eligibility, it also makes it difficult for you to trust the banking sector. So, whenever you plan to take a loan, especially a personal loan, proceed only after you have a good credit score. How can you ensure a good CIBIL score before taking a unsecured personal loan to get quick approval. Below are some steps you can follow:-

1) Pay Off Existing Debt: If you have any existing debts documented on your name, it would be wise to start with paying them off or consolidating them. Existing debts not only increase your FOIR - Fixed Obligation to Income Ratio, the chances of you getting a fresh loan also decreases.

2) Maintain Old Credit Cards: If you have multiple credit cards, you have to ensure utilization of each one of them. Owning credit cards but not using them i.e. not maintaining the standard credit-to-utilization ratio is a cardinal mistake. Avoid committing such mistakes. Also, if you own credit cards from a very long time, it’s better to keep using them rather than closing them.

3) Avail Mixed Credit: Your credit portfolio should be balanced: too much of either unsecured loan or secured loan for that matter would affect your credit eligibility. Try to follow the suggested approach for as long as possible.

4) Check your score every year: Last but not least, make it a habit to check your credit score at least once a year to rectify the incorrect mistakes which may have been listed in your repayment history.

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