Tag Archives: Credit Builder loan

You get to understand the real impact of ‘Credit Score’ when you enter the financial market in your life. This three-digit figure holds the entire power to shape your financial journey in numerous ways.  From availing loans to influencing the rate of interest and even potential job opportunities, this score plays a very crucial role. What is a credit score? How to boost it? In our country, this score is a numerical representation of an individual’s creditworthiness, measuring their overall ability to manage and repay debts. CIBIL, i.e., Credit Information Bureau India Limited, generates this score for you so that you have a clear picture of where you stand in the financial sphere. Remember that such a score ranges from 300 to 900, and a higher score obviously indicates a stronger profile, reflective responsible borrowing habits, and timely repayments. This increases the likelihood of loan approvals at favorable terms and conditions.  Your score is dependent on the below-mentioned five factors: Repayment History Credit Utilization Length of Credit History Credit Mix Recent Credit Activity Timely and Scheduled Payment The topmost influential factor affecting your score is your payment history. Therefore, ensure timely payments on all credit accounts, including loans, credit cards, and utility bills as well. Remember that missing payments or making late payments impacts your score in a negative way. Setting up automatic payments is one of the best options to avoid missing due dates.  Monitor Report Regularly Keep a close and keen eye on your report in order to point out any kind of discrepancies that might negatively impact your score. As per the law, one can also avail of a free credit report every year from each of the major credit bureaus in our country. So, scan and review these reports to ensure that things are in the right place at all times.   Management of Credit Utilization The ratio of credit used to the total available is known as Credit Utilization. It plays an important role here, so aim to keep it below the margin of 30%. Moreover, if possible, pay down outstanding balances and avoid maxing out credit cards.  Maintaining Healthy Credit Mix A diverse credit portfolio, which means a mix of Stashfin credit card, online cash loan, etc, can positively influence your score. Keep in mind that unnecessary applying for credit products to boost score is not advisable. Instead, focus and manage the current ones in a responsible manner.  How Your Credit Score Impacts Your Financial Future? Rate of Interest and Loan Approval In our country, a good score affects loan approval processes and personal loan interest rate. If you have a higher score, the likelihood of loan approval increases. Moreover, individuals with higher scores are often offered loans at more favorable interest rates, ultimately reducing the overall cost of borrowing.  Credit Cards These companies in India first take a look at your credit report and then approve or reject the applications. A good score enhances the overall chances of getting approved for credit cards with better benefits and higher credit limits.  Power for negotiation If you have an impressive score, it gives you the authority to negotiate when dealing with financial institutions. It basically allows for negotiation on the rate of interest, fees, and terms and conditions for loans or other relevant products.  Conclusion All in all, this score is a crucial factor that determines your financial future in India. A good one is not just a number; it’s considered a gateway to favorable financial terms for a better living and lifestyle. So, if you are planning to boost your current bad score, just follow the above mentioned tips and you are more than good to go! Also, keep in mind that the score also plays a crucial role when you are planning to avail an instant loan.   Download Stashscore App to check free cibil score: https://bit.ly/stashscoreapp   Read More: Factors Influencing Personal Loan Approval: Credit Score, Income, and More  

In the current economic landscape, navigating credit builder is undoubtedly tough and daunting. With financial stability being the top most priority for everyone, establishing and stabilizing a solid credit history has never been more critical.  At Stashfin, we understand the challenges individuals face in securing their financial futures, which is why we are here to offer solutions that empower our potential customers to build a robust financial foundation. Personal loan, a credit builder loan is a powerful tool basically designed to assist individuals in establishing or rebuilding their credit score.   What is a credit builder loan? Why should you opt for it? Well, you might have gotten the idea by the term. It is a specialized financial tool that helps individuals establish or improve their credit scores. Unlike traditional loans, where funds are offered upfront, this type of loan works in the opposite manner. Here, the potential borrower receives the amount of the loan only after successfully completing the repayment.  Now, when it comes to why you should opt for, then keep in mind that by choosing this loan, you can easily pave your way for future financial milestones, such as securing better rates of interest on future loans, qualifying for mortgages, or even for accessing other financial opportunities that require a strong credit history.  What are the top advantages of availing this loan? Rebuilding Credit History For those recovering from past financial setbacks or planning to improve their current credit score, this loan offers an opportunity to showcase responsible financial behavior. On-time payments demonstrate creditworthiness and have the potential to counter past negative marks, gradually improving credit scores.  Low Risk These loans come with low-risk structures along with manageable repayment terms. The amount of the loan is usually small, making it much more accessible to a wider range of individuals.  Access to future opportunities When you build a strong credit report, it’ll automatically open doors to better financial opportunities. It can lead to lower personal loan interest rate on future loans, easier approval for credit cards with higher credit limits, etc. This type of loan acts as a bridge to access future opportunities by solidifying the creditworthiness.  Flexible acceptance Because the current market for credit-builder loans is designed for those with low credit scores, lenders have much more flexible requirements. Here, the lenders will not require good credit but instead will request information on your income, employment, and account balances.  Financial Discipline Managing this type of loan requires discipline and financial responsibility at all times. Now, it can serve as a learning opportunity for potential borrowers to understand and learn the importance of timely repayments as well as budgeting.  Why Stashfin? We at Stashfin have made one thing very clear: to offer accessibility and feasibility to all our current as well as potential customers. You need not visit anywhere physically as we operate completely digitally. Just visit our website or download our application on your Android/iPhone device, and you are more than good to go for this type of personal loan.  Moreover, we offer loans and charge no interest on them. This means you’ll have to pay back the same amount you borrowed from us initially (terms and conditions apply). You can check our website for more details on this.  Conclusion All in all, this type of loan stands as a foundational pillar in building and safeguarding one’s financial future. This versatile tool not only helps in repairing your credit history but also instills valuable financial habits.  Lastly, remember that the advantages of this loan extend beyond immediate credit report building goals, offering a path to long-term financial stability.  Get in touch with us today to start your financial journey.  Read More: Factors Influencing Personal Loan Approval: Credit Score, Income, and More