Maximising your credit score for a better personal loan

Ensuring an optimal credit score is pivotal in securing favourable terms for personal loans. Your credit score acts as a financial report card, influencing banks' decisions regarding your borrowing capabilities and the interest rates you will be offered. It's essentially your financial reputation on paper. With a higher credit score, you stand to benefit from lower interest rates and more favourable loan terms.  

With a good credit score of 730 or more, you can be eligible for superior loan solutions such as IDFC FIRST Bank’s FIRSTmoney smart Personal Loan. FIRSTmoney offers you a credit line with the freedom to draw funds multiple times, featuring competitive interest rates and flexible repayment options, tailored to suit your dynamic financial needs. 

Who is eligible for FIRSTmoney smart personal loans?
 

FIRSTmoney credit lines are available to select individuals with a healthy credit score of 730 and above offering instant approvals for credit limit of up to ₹10 lakhs. The final approved amount may vary based on the credit history and scores. Here is a list of the basic eligibility criteria to apply for FIRSTmoney smart loans:

• CIBIL score: To apply for the FIRSTmoney credit line, you need to have a good credit record and a CIBIL score of 730 and above.
• Age: You need to be aged between 21 to 60 years to apply for this line of credit.
• Employment: The applicant must be a salaried individual with a steady income. With the line Both Salaried and Self-Employed Individuals can apply.
• Documents: Individuals need to present their physical PAN card at the time of completing the video KYC process.

Easy steps to apply for FIRSTmoney smart loan
 

With a strong credit profile and stable monthly salary, you can apply for a FIRSTmoney smart personal loan in 5 easy steps as mentioned below.

• Start by scanning the QR code or click on the loan option from your smartphone.
• Register using your mobile number and confirm basic details to check your eligibility.
• Select the loan amount of your choice (starting from as little as Rs 5,000 up to your full credit limit) and choose flexible repayment terms.
• Link your bank account where you wish the funds to be disbursed.
• Complete the video VKYC verification process with your physical PAN card.

After you get approved of your credit limit, start using the funds right away as per your needs and withdraw money in parts or at once.

Important tips for improving credit scores
 

Boosting your credit score is essential for improving your financial health and accessing better borrowing opportunities. Here are four effective strategies to elevate your creditworthiness:

1. Timely payments: Consistently pay your bills on time to establish a positive payment history, which is a key factor in determining your credit score. Consider setting up automatic payments or reminders to ensure you never miss a due date.
   
   
2. Monitor credit reports: Regularly review your credit reports from credit unions to check for errors or inaccuracies. Dispute any discrepancies promptly to ensure your credit profile accurately reflects your financial behaviours.
   
   
3. Maintain long-term accounts: Length of credit history is an important factor in calculating your credit score. Keep older accounts open, even if you no longer use them frequently, to demonstrate a stable credit history and improve your score over time.
   
   
4. Limit new credit applications: Avoid opening multiple new credit accounts within a short period, as each application can result in a hard inquiry, which may temporarily lower your score. Instead, be selective about applying for new credit and only do so when necessary.

Conclusion
 

Maximising your credit score is an essential and smart move that can significantly impact your financial future, particularly when it comes to securing favourable loan terms. A good credit score not only opens doors to lower interest rates and better loan terms but also reflects your financial responsibility and trustworthiness to the bank. By leveraging innovative lending solutions like FIRSTmoney smart loans, you can capitalise on your creditworthiness and enjoy the flexibility to draw funds anytime when needed and affordability to repay EMIs only on the used funds. Take the next step towards your financial goals by applying for a FIRSTmoney smart loan today and unlock the benefits of your good credit score!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.