Credit cards are one of the easiest ways of getting credit. However, at times we might lose track of our expenditure and overspend our plastic money. In such cases, getting a personal loan to pay off your credit card debt can be very beneficial.
Paying off your credit card bills on time is one of the most important factors which is taken into consideration for deciding your creditworthiness. You can always pay off at least the minimum amount which is due on your credit card and carry forward the remaining amount. However, if you are not able to pay the minimum amount as well, it will have a negative impact on your credit scores.
In such cases, you can consider getting a personal loan which is usually offered at an interest rate which is lower than the credit card’s interest rate. You can use this money to pay off the credit card bill and take your own sweet time to pay off the personal loan in Equated Monthly Instalments or EMIs. Resorting to this method not only clears off your debt on the card but also makes it easier for you to manage your finances.
If you are overburdened by your credit card debts, a personal loan might be the best option. Some of the benefits are as follows:
The eligibility criteria for personal loans differ from lender to lender. However, there are certain factors which are common across the industry. Some of these factors are as follows:
There are a number of other factors which are considered for your personal loan eligibility. You can also check the personal loan eligibility for top lenders in 2019 Click Here for a detailed idea.
You will need to provide your PAN, identity proof, address proof, and income proofs. This will include:
Applying for a personal loan has never been easier. BankBazaar makes sure that your experience is seamless and hassle-free when you are applying for a personal loan. All you need to do is provide a few basic details and BankBazaar will find out the perfect loan product for you on the basis of your eligibility.
BankBazaar will take you through an easy-to-use carousel on which you will be required to provide the information mentioned below:
1) Your gender
2) Your age (including your date of birth)
3) The city in which you reside
4) The type of residence you are residing in
5) Your employment type – salaried, self-employed, retired, and so on
6) If you click on the ‘Salaried’ option in the last slide, you would be required to provide the name of your company
7) The date of joining the company along with total work experience
8) Your net monthly salary
9) The bank with which you have your salary account
10) The purpose of taking the personal loan – in this case, click on ‘Other’
11) If you have any existing loans, you will be required to mention the EMI amount that you are paying for the same (You can skip this step if you don’t have an existing loan)
12) In the final step, you have to provide your personal information, such as your name, mobile phone number, and your email ID.
13) Click on the ‘View FREE Offers’ button in the end, to see all the personal loan products that you are eligible for and apply through BankBazaar.
If you are ready to apply, head to the application section click here and find out the right personal loan and pay off your credit card bills immediately.
Personal loan interest rates in India starts from 10% p.a. Even with these rates, personal loans are cheaper than credit cards. With credit card overdues, it is unlikely that you would have a high credit score. This means that you may not be able to negotiate low interest rates with your bank.
Almost all banks in India offer personal loans to eligible candidates. These banks include nationalised banks, private banks, scheduled cooperative banks, and non-banking financial companies. The prominent personal loan providers include:
Ensure that you use an EMI calculator to see how much amount you would have to pay on your personal loan every month. This will help you determine how much you owe and plan your finances well.
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