Are you struggling to keep a good credit score? We often wonder about the variables involved in determining our credit scores. While there have been several futile attempts of speculation to understand the factors behind increasing a credit score, the reality is far simpler than what many projects it to be. A credit score has proven to be quintessential toward securing a higher loan amount or having favorable interest rates in an individual’s favor. Ultimately, several groundless myths have emerged that prompt an individual to resort to uncalled actions and availing of loans.
However, it begs the question. ‘What accounts for a rise in one’s credit score?’ And ‘how can an individual acquire loans on a short-notice with an average credit score?’ The antidote for all these concerns points in only one direction, i.e., instant loans. Often, we find ourselves in an instance that demands an urgent need of funds. In these circumstances, approaching the traditional means of loans would worsen the situation, and an individual would be met with a clear case of rejection. Yet, attributing to the advancement of technology, people can now procure instant loans from several applications and platforms, thereby also impacting their credit scores.
- Instant Loans & Credit Score
Managing personal finance is a complex story to dive into. However, even unwillingness can be rendered helpless when an individual faces circumstances that requisite instant funds. The virtue of applications, such as Pocketly, kreditbee, etc is that they help an individual avail of instant funds up to a certain limit within minutes and hassle-free. Organizing your instant loans or credits in a responsible and disciplined manner can lead to an increase in your credit score. Below are some pointers that interrelate between instant loan apps and credit scores.
- Frequency & Extent
How frequently do you opt for instant loans through all the related platforms and applications? Procuring too many instant loans or having several loan applications active could raise a downfall alarm for your credit score. It invites doubts and investigation into your credit report that does not bode well for any individual. The key to avoiding this nightmare is to monitor your need for instant funds and apply only for the amount the situation asks for.
- Repaying Of Loans
There cannot be enough emphasis on the pointer of repayment of all your loans. A delayed payment would pull higher interest rates and severely impact your credit score. Timely payment reflects a positive and reliable attitude toward an individual’s borrowing, especially through instant funds applications and platforms. Consequently, there is an improvement in your credit report, which is facilitated through applications such as Pocketly, navi, etc.
- Diversification Of Credit
In contrast to a diversification of a portfolio, diversification of credit entails having different sources of credit borrowing and having the ability to repay them efficiently. The former credit mix includes having credit cards, instant loan applications, etc. Having a similar reputation across different segments can boost your credit score tremendously.
Recently, relying on instant loan applications and platforms, such as Pocketly, nira, etc., has been a routine for many, especially salaried employees and self-employed individuals. Ultimately, the weightage carried by these applications plays a pivotal role in increasing or decreasing your credit score. However, credit through these platforms can only guarantee a higher credit score, provided that an individual is disciplined and responsible.