Sometimes, you need a long and short-term loan to fulfil your financial goals. About short-term loan goals may include home renovation, shopping needs, paying your monthly debts, etc. A short-term loan is an ideal funding option to address these goals. Therefore, a short-term loan and financial institutions look at a specific part of the parameters to gauge your creditworthiness. Improving a CIBIL score is one of the most significant before applying for any loan.
CIBIL is a 3-digit number indicator of your financial credit history, ranging between 300 and 900 because this score considers one of the best scores according to all financial lenders and banks. It works because financial institutions provide you with a loan, which makes a credit report comprising your credit score.
The amount of loan and Interest
The loan amount you will receive depends on your CIBIL score. You can get a high-value short-term loan amount within a few hours after applying on Paisaintime’s official website. It is the only company you will get an instant short-term loan without any collateral. Also, a high credit score takes you in a top position to negotiate interest rates offered on the short-term loan amount.
Safety and Security
Paying your EMI on time shows that you have repaid all your loans amount on time without hassle-free; also, it assures lenders that you will continue doing the same in the future and you are one trustworthy person. Your creditworthiness to repay the loan is the priority for banks and financial lenders to instantly grant the personal loan amount to your bank account.
Approval of loan application
Your approval of a loan application depends on your credit score, and it is the first thing financial lenders and banks check when you send your request for a personal loan application. Financial lenders are more inclined to approve and disburse loans to candidates with excellent credit scores. Therefore, they might be doubtful and consider your loan amount application if your CIBIL score for personal lending is low.
Apart from these, also some other beneficial points of having a good credit score like:
- Nowadays, many landlords and societies house owners request credit checks before agreeing to rent out a place to applicants.
- Several furniture rental firms also perform credit checks before providing you with their furniture on rent. Maintaining a good credit score would ensure that you get a good offer from the furniture store.
- It is suitable for you before applying for a personal loan online, and it is pretty advisable to check your credit score to be more prepared for future transactions easily.
The above information is quite helpful for you, and not all can predict a financial crisis may occur because a short-term loan could benefit you in your financial situation. The short-term loans are collateral-free, and the only way to avail of one is with a higher CIBIL score. Paisaintime provides you with an instant short-term loan in a few hours with less paperwork.