StashFin Credit Line and Credit Score: How are they related?
StashFin credit line is like a hybrid credit instrument that combines the best features of a credit card and a loan. It is much like a credit card, wherein you can borrow a predefined amount of money repeatedly, and like a personal loan, you can repay the borrowed money in flexible EMIs at lower interest rates (than a credit card).
A credit score is a numerical summary (usually 3 digits) given by a credit rating agency based on your credit history. In India, the Reserve Bank of India has licensed 4 credit information companies to maintain a record of a borrower’s credit history. The four licensed credit information companies are Credit Information Bureau (India) Limit (CIBIL), Experian, Equifax, and Highmark.
A credit score lets a potential lender know about a borrower’s tendency of repaying a debt.
So, How Does a StashFin Credit Line Help Your Credit Score?
Credit scores are calculated taking into consideration factors such as payment history, credit utilization, credit mix, etc. Although you cannot change your credit score overnight, you could begin building it with StashFin.
Building a Credit History: It might be difficult if not impossible to build a credit history if you are a first‑time borrower. StashFin is designed to help first-time borrowers build their credit history. It employs Machine Learning and analytics techniques to reduce the risk of lending to first-time borrowers.
Both salaried and self‑employed individuals are welcome to apply for a credit line with StashFin. You can borrow a minimum of ₹ 1000 to ₹ 5 Lakhs, depending on your financial profile. The amount you borrow can be repaid in easy EMIs.
Once your credit line is approved and availed, all you have to do is pay your Dues/EMIs on time to build a good credit score.
Credit Utilization: While using a credit card, for example, you have to utilize not more than 30% of your credit card limit in order to maintain a healthy credit score. With StashFin credit line you can load up to 100% of the funds approved in your credit line, without negatively impacting your credit score.
Credit Mix: Having a mix of loans across types and tenures can help boost your credit score. StashFin credit line serves this purpose as it is a unique type of loan with flexible tenures ranging from 3 to 36 months. StashFin credit line comes with a credit line card; therefore, you can use it either as a credit card or as a personal loan.
To sum it up, having a StashFin credit line can help you:
- Build a payment history from scratch.
- Maintain a good payment record (if you pay your dues on time).
- Increase the “credit mix” factor of your credit score.
These factors in turn can positively impact your credit score.
Additionally, StashFin credit line comes in handy when you need some extra cash to meet your needs.
To know more about the features and procedures to apply for a StashFin credit line visit: https://stash.page.link/FB_ORG