Easy money is never easy to get your hands on, or else everyone would be rolling in cash at all times. However, with good fiscal responsibility, history of being able to repay a loan taken earlier and other documents in place, you could get easy money in the form of a personal loan to meet emergency unforeseeable expenses.
It is now a viable option to take a loan for important personal expenses like renovating your house, taking a family vacation when everyone’s vacations are around the same time. Being a salaried or fixed income professional can make cash flow a hurdle when it comes to making plans like these and many people who know they will be able to pay for expenses that they need to make urgently, over a predetermined period of time.
Indeed, financial responsibility is about prioritizing your expenses and utilizing your funds to the best possible extent. It is not always necessary to have the funds for the investments that you need to make, if you know you have a steady source of income and can afford to take a personal loan and pay it back.
When you need money urgently without having collateral assets to put up, you have two options - a personal loan or a loan on your credit card. While a personal loan will take a few days to process and you’ll need to show / submit documents, credit card loans will come through in a matter of hours without any proof.
That being said, both credit cards and personal loans are essentially very different products. A personal loan needs documents such as identity and address proof, income and bank statements of the past three months. It will take three to seven days to get sanctioned. For credit card loans, documents are not needed as usually these are pre-approved for existing card holders and are often cleared within a few hours.
However, the most important factor for getting a personal loan approved is your CIBIL score. This is basically a three-digit numeric summary of your credit history. The range of the CIBIL score is from 300 to 900. The CIBIL score threshold for getting a Personal Loan is 750. Any score higher than this can help you get a better interest rate. The closer your CIBIL score is to 900, the easier it will be to get your loan disbursed quickly. Want easy money? Maintain a good credit score!