Everything You Should Know About CIBIL Scores for Education Loans
For an education loan, you need a good
credit score. However, there’s a little difference in education loans in
comparison to other kinds of loans. The credit score of the students is not
evaluated. It is the credit score of the parents or guardian will be checked
that actually takes the loan. Since the students are not having a credit
background to show, it is the parents or the guardian that actually needs to check my credit score and have a good
credit score to get approval on an education loan. It is important to improve
your Experian credit score and
be eligible for an education loan. An education loan is completely unsecured in
nature, therefore the need for a credit score is high.
Important note:
If you are a student without any
credit history, then you can apply for an education loan with a working parent
as a joint applicant or a guarantor. In such a case, the loan provider will
consider the credit report of your parents to determine their repayment
capacity on your education loan.
How to improve your credit score to get an education loan?
● Payment history is an important
factor in building your credit score. It is very important to make timely
payments on your monthly loan instalment as well as credit card bills. There is
a due date for every bill amount, and you need to make sure that you do not
cross the due date. It is important to make sure that you make your payments by
the due date. When you delay the payments, the loan becomes expensive and you
end up damaging your credit score. For business loan interest rate visit : business loan
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● Keep your credit accounts open
even when you do not use them. Credit accounts like credit cards and loans are
very important if you are trying to build your credit score. A credit account
is one of the important factors that are counted in the credit report that offers
you a particular credit score. For example, if you have a credit card with a
long transaction history that you have been using for a long time, it will add
to your credit score. Therefore, if you have such credit accounts in your
history you need to make sure that you keep them open. This will help in the
improvement of your credit score.
● When you make a payment, make
sure there is no pending amount left on your credit card or monthly instalment
amount. Any overdue or outstanding amount on credit card bills or monthly
instalments of loans will immediately result in credit damage. If you are
improving your credit score, you need to stop making minimum payments on your
credit cards.
● If you want to improve your
credit score, credit building happens only when you do not allow loan providers
randomly to run a hard inquiry on your credit profile. When you apply for
multiple loan applications, the loan provider will run a hard enquiry check on
your credit score. It is important to make sure that you work on your loopholes
and do not keep on applying for a loan within a short span of time. Too many
loan applications will not allow you to build your credit score.
Wrapping up
A good Experian credit score will help in getting an education loan
approved. To get approval, go to the Clix Capital website and look for the
option to check my credit score.
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