How to Manage Personal Loan EMI?
Being a millennial, managing personal finance is not a big deal for most of us. Those money management tips and tricks are heard and implemented many a time in our lives. Sometimes we succeed while some other times we fail to manage our money. While trying to meet both the ends, many a time we fall in a shortage of money and had to borrow. The borrowing and paying it off has become undividable parts of our lives.
In this chain of borrowing and paying, sometimes we start taking personal loans lightly and make small though significant mistakes in personal loan payments. Here in this article, we are focusing on some points to manage your personal loan EMIs more efficiently.
Boost up Your Credit Score
A personal loan has more impact on your credit score than a secured loan. Unsecured loans are provided to the applicants on the basis of credit score and hence a disciplined repayment boosts credit score very soon. In the same way, a late or missed EMI can crush your credit score. So one has to be much careful in the repayment of the loan.
Build A Good Repayment History
While checking one's creditworthiness, along with the credit score, the repayment history or the credit report is also checked. If it happens that you miss a payment, your credit score will fall. But when you keep on paying your EMIs on time for a quite long period of time, it would gradually come back to its previous position. But your missed EMI will still reflect in your credit report which can never be erased. Hence knowing the fact, such blunders should never be repeated.
Prevent Late Payment Penalty
When you miss your EMIs, it is not only the credit score or the credit history which is impacted. Your missed EMI is going to be heavy on your pocket too. A missed EMI will attract a penalty on it. The next month before you pay your regular EMI, you are to pay off the penalty for missing your payment. The calls and messages from the lender are the additional trouble you are going to face.
Calculate Your Eligibility before applying for a New Loan
When you avail a loan, your eligibility for the next loan decreases until and unless you pay off the present loan. Once the personal loan payments for the first loan is cleared, your credit score will boost as well as your loan eligibility. So, if it happens that you are in need of another loan, you are to be calculated while mentioning the desired loan amount.
The same day loans have simplified the loan processing systems to a great extent. But the best of a personal loan can be enjoyed only when you are know how to manage your loan EMIs efficiently.
