Every person who applied to get a loan wants it to get approved and disbursed as soon as possible. For this to happen, there are some things that you need to take into consideration.
Car loans are a product that the bank offers, although we need to understand that it is only given to worthy consumers who will pay back the amount to the bank.
To understand who is worthy of getting a loan and pay it back in time, the bank has set some guidelines. If the bank is giving you a secured loan, then the bank has the least risk rate, that is the case with car loans.
Even though you don’t pledge any properties while availing of a car loan bank with your car's security, Bank can sell the car to secure the loan amount. Even though given according to an individual’s credit score, car loan interest rate tend to be on the lower side of the range because it is a secured loan.
City union bank car loan provides interest rates of 14.5% for the car loan. The maximum loan amount is Rs. 5 lakh and processing fees are 1.25% of the loan amount. Lowest EMI offered per month is about 2300 rs. With an interest rate of 14% over 5 years, that is 60 months.
Some things need to be taken into consideration for your credit score.
Take into consideration what matters the most for your credit score to be called a perfect credit score. There are several things such as the duration of the credit history, amount of debt, regular payments, etc. some of them don’t have much impact, and some matter a lot for your credit score. Remember that making timely payments is a key ingredient to maintaining a good credit score.
The credit card balance should be lower than your credit card limit. 30% of the credit card balance is generally advised. For your score to stay healthy, this is an important thing. Banks keep records of the statements of credit cards with payment history. That is why this is also a thing which needs to be taken into consideration. Old credit cards are crucial for banks that care more about longer histories. A wider history tells the bank that you are a worthy candidate to pay back the debt taken. Hence it's also a crucial thing to think about , which doesn’t take much effort for you to try to to .
Other loans that you have also have an impact on your credit score. Hence along return back your credit card debts promptly, you also need to pay other loans EMIs on time.
When buying a new credit card, keep this in mind not to have too high a limit on it. Credit card reports need to be read to study them. Pay attention to everything written over there in the contract and understand how different things influence your credit score differently.
A credit score ranges from 300 to 800. Banks and lenders provide loans to people with a minimum credit score of 670 or more but not less than that. That is why at least remember that you maintain this minimum score. With a perfect credit score, personal loan interest rates can go as low as 7.35%, which will surely make your decision to taking a loan worth the while. Taking a loan can be a great decision if you are not using up all your savings investing other savings in high-interest bank accounts investing then elsewhere, which will lead you more money. Only paying regular EMIs and not making large purchases can be a perfect financial strategy for some people. Although remember every individual is different and take calculated decisions according to your finances.
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