Going on a holiday can help shake off the boredom and stress of a mundane lifestyle. But a holiday can get expensive, especially if it’s a dream holiday you’re envisaging. However, if you’re worried about finances, you can look at ways to cover the expenses. Availing a travel loan is one of them. A Personal Loan for Travel covers all your vacation expenses, including accommodation, tickets and other expenditure.
Availing an instantly approved Personal Loan for your holiday is now easy, with only minimum documentation. More and more people are making use of Personal Loans to plan their holidays. Banks and financial institutions offer Personal Loans with benefits like instant approval and no collateral requirement, which makes it more convenient.
To be assured of a Personal Loan with instant approval, a good CIBIL score is key. You may face rejection on your loan application if your CIBIL score does not touch the minimum requirements. A good credit score can be your key to a hassle-free holiday. Lets’ find out more about credit scores and how it can affect your travel plans.
Understanding CIBIL score
Your credit score is a three-digit number, which describes your creditworthiness summarising your credit history. It gives a quick idea of your credit health to your lenders. A CIBIL score is provided by CIBIL, which is one of the four authorized credit bureaus in India. When you apply for a vacation loan, your lender looks into your CIBIL score as the first criterion for reviewing your loan application.
Once the lender is satisfied with your credit score, you could proceed with other eligibility criteria needed to complete the documentation. To take a holiday loan, you may want to check your eligibility and required documents in advance for a hassle-free process.
Effect of CIBIL on your holiday plans
When you apply for a travel loan, your credit score can affect your traveling plans. A good credit score assures the lender that you are creditworthy to return the loan amount. It may help you get a large amount as a loan, and in turn, help you plan a better holiday destination. It also expedites the approval process. On the other hand, a low score raises a red flag on your creditworthiness and could lead to your loan application being rejected.
Calculating the CIBIL score
Your CIBIL score is based on your credit report prepared by CIBIL. The credit report is based on your payment history of past loans and credit cards. CIBIL collects the data from your credit profile including EMIs, outstanding payments and concludes a credit score for you. You can look for your CIBIL score on the CIBIL website.
Minimum CIBIL score required for Personal Loan
Credit scores range from 300 – 900. The closer your score is to 900, the stronger is your credit profile. Initially, a lender looks for a minimum CIBIL score of 750 to proceed with your Personal Loan application. A lower score may lead to the loan request being rejected. Or, if accepted, the Personal Loan may come with specified terms and conditions.
Building your CIBIL score
As your holidays depend on your CIBIL score, you may want to build it up, before you apply for a vacation loan. You can improve your CIBIL score by clearing off your debt as soon as possible. Clearing debt would involve paying off pending EMIs and repaying credit card bills on time. Moreover, using approximately 30%-40% of your credit card limit, every month, can further improve your score.
To sum up
A good CIBIL score can help you fly to your dream holiday destination without a hassle. Your dream of enjoying serenity amidst lush green hills or wading through the cool blue ocean water can come true with a Personal Loan. With a Personal Loan for travel, you can ensure your finances do not hold you back from going on a holiday.