In the present era, we have an atmosphere of uncertainty. With the COVID-19 pandemic, people are facing a financial crisis. This has caused a loss of livelihood and has slowed down the economies. People are also taking financial steps to avoid this. People want to promote emergency funds and maintain adequate insurance coverage to deal with the economic fallout of the ongoing crisis. Many people are regularly examining their credit reports and keeping an eye on it. If you are also regularly checking your credit report, you can get some benefits.
1. Home Loan in Low EMI:
Due to the COVID-19 crisis, the RBI had to cut the repo rate to increase liquidity in the system, which led to lower home loan interest rates. However, this is good for homebuyers who were seeking loans at lower rates. Whereas, the lowest home loan rate is given to people with better credit scores. Interest rates on repo-linked home loans are calibrated as per the borrower's credit profile. The lower his credit score, the higher his interest rate. So, if you want to take a home loan, check your credit score in advance and keep it above 750.
2. Personal Loan:
Because of the emergency crisis due to corona, people are thinking of taking loans. However, many people do not want to bring domestic gold, insurance policies to keep the loan safe. So personal loans are proving to be the best option for them. If the credit score is good, the personal loan will also be easily found. Meanwhile, the credit score will be good if you keep above 750. So, keep checking your credit score regularly while planning to take a personal loan.
3. Improvement of credit score:
Sometimes there is slight neglect in credit scores when the credit card payment deadline is over, or the credit score is used more. Nevertheless, when we are applying for important features like personal loans, car loans, or home loans, a bad credit score has a wrong effect. So keep improving the credit score and keep an eye on it.
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