When applying for a Personal Loan, evaluating your credit score beforehand is important. It helps lenders assess your application and decide whether you can manage the loan. This score ranges between 300 and 900, whereas a score above 750 is considered decent.
When you plan to apply for an instant loan, try to manage at least a 720 credit score. However, many people face difficulty in getting approval due to low credit scores.
How to Achieve a 720 Credit Score in 6 Months?
Improving your 720 credit score within six months involves strategic actions. These are as follows:
Pay on Time
Starting with how to get a 720 credit score, ensure all your payments are made on time. Late or missed payments can negatively impact your credit score.
Reduce Your Debt
Work on paying down existing debt. Lowering your credit card balances can help reduce your credit utilisation ratio and boost your score.
Keep Cards Open Over Time
Maintain older credit card accounts open to lengthen your credit history, positively influencing your credit score.
Avoid Credit Applications
Limit new credit applications to avoid hard inquiries on your credit report, which can temporarily lower your credit score.
Keep a Smart Mix of Credit Types Open
A mix of credit types, such as credit cards and loans, shows you can manage different credit responsibilities effectively.
Is 700 Considered to Be a Good Credit Score?
A credit score of 700 is generally considered good. It indicates responsible credit behaviour and financial stability, making obtaining loans and credit cards easier. However, aim for a credit score of 720 and above to get better terms and fast approvals with a streamlined application process from the lender.
Understanding the Benefits of a 720 Credit Score
High credit scores can lead to significant financial advantages and better financial health. A 720 credit score offers numerous benefits, including:
- Faster loan approvals
- Lower interest rates
- Higher credit limits
- More favourable loan terms
How Does a 720 Credit Score Help You Applying for a Personal Loan?
Having a credit score of 720 or higher simplifies the process of getting Personal Loan due to several benefits:
- Lower interest rates: Borrowers with a credit score of 720 or higher are offered Personal Loans with lower interest rates.
- Higher loan amounts: Individuals with a credit score of 720 or above may qualify for higher loan amounts compared to those with lower credit scores.
- Faster approval process: With a credit score of 720 or higher, the approval process for Personal Loans is often expedited.
- Better repayment terms: Borrowers with a credit score of 720 or higher are offered better repayment terms for Personal Loans.
Steps To Apply for an Instant Personal Loan Online
Applying for an instant Personal Loan online with Hero FinCorp is quick and convenient. Here's how:
- Download and install the Hero FinCorp Instant Personal Loan app
- Register using your mobile number
- Enter a few necessary details like your personal, professional, employment, and financial information
- Scan and upload the required documents, including your identity, address, and income proofs
- Get approval with a loan offer after the verification
- Accept the loan offer to initiate the disbursal process
Conclusion
Achieving and maintaining a 720 credit score is crucial for accessing favourable financial products and terms. You can build and sustain a strong credit profile by consistently paying bills on time, reducing debt, and managing credit wisely. This will help you secure better loan terms and interest rates and improve your overall financial health.
Frequently Asked Questions
1. Is 720 An Ideal CIBIL Score?
A 720 is considered a good credit score for securing Personal Loans.
2. Can I get a Credit Card with a 720 Credit Score?
Yes, you can usually qualify for a credit card with a 720 credit score.
3. Can I get a loan with a 720 credit score?
Yes, a 720 credit score usually helps in getting loan approvals. You should also provide accurate documentation and meet all eligibility conditions.
4. Should I avoid using credit cards to improve my credit score?
No, using credit cards responsibly can help improve your credit score.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.
