Everyone in his life has two dreams which starts with his teenage life and that is to buy his dream car and his dream home. For most of the working class it takes entire life to get through these two possessions and in India if we look at the property or real estate rates then it’s becoming out of the reach of the common man. In such a scenario the responsibilities and roles of the banks become very prominent in the economy to drive through the loans and help medium class people to own their dream homes.
On the contrary the loan cycle in India starts majorly at the young age or at the teenage you can say when a person in his 15-17’s enters any professional qualification and he starts his relation with the banks with Education loan in all good intentions to repay back once he gets the job and starts earning. Post this loan he buys a car and then he buys a home. So on an average we can say that there is a significant percentage of people who take loans from different banks namely Punjab National Bank (most famous bank for any educational loan ) , State Bank of India (most famous bank for education loans and home loans ), ICICI Bank (bank famous for corporate and personal loans ). We too have some NBFC’s offering home loans like Indiabulls, DHFL loans and others.
Does small loans also contribute to bad credit score #Smartphonefinance
Any type of loan or any type of credit taken from any type of company bank or NBFC can contribute to your credit building. If you are looking for credit cards even on any of the financial aggregator portals like Bankbazaar, Paisabazaar the companies offering credit cards will check your credit score and it will impact your ratings further. Does this means that you should apply for such things only and only if you badly want one then the answer is yes, but if you were just looking for the offers on the Bankbazaar or Paisabazaar site then you should beware it might impact your credit score.
How your bad credit score builds up.
- Keeping credit for long time :- Not paying your dues on time and then credit keeps building up like you missed your credit card payments for 3 times in a row will always contribute in bad credit.
- Always pay before due date :- this can be a great practice because all loan companies will analyse your repaying behavior and then only they can offer you further loans
- Rotating credit should be low :- Excessive use of your credit card can also be one reason of bad credit score. You can still repay on time but companies will analyse your behavior of being in a habit of taking loans every now and then