EMIs, or Equated Monthly Installments, have revolutionized the way we purchase big-ticket items such as homes, cars, and white goods. With EMI options, you can now convert your big dreams into affordable reality. But how do you go about availing an EMI option and what role does your CIBIL score play in this? In this article, we will explore the power of EMIs and the steps you can take to improve your CIBIL score and get a Bajaj card.
The emergence of EMI options has made it easier for people to purchase expensive items without having to pay the entire amount upfront. However, availing an EMI option is not as simple as it sounds. Financial institutions and lenders use a variety of criteria to evaluate the eligibility of a customer for an EMI option. One of the most important factors is the customer's creditworthiness, which is reflected in their CIBIL score.
CIBIL, or Credit Information Bureau (India) Limited, is a credit information company that collects and maintains records of credit-related activities of individuals and companies. Your CIBIL score is a three-digit numeric summary of your credit history, ranging from 300 to 900. A high score indicates good creditworthiness, while a low score indicates poor creditworthiness. A good CIBIL score is crucial for availing a loan or an EMI option.
So, how do you improve your CIBIL score? The first step is to check your credit report and ensure that all the information is accurate and up-to-date. Any errors or discrepancies in your credit report can negatively impact your CIBIL score. You can obtain a free credit report from the CIBIL website once a year.
Once you have reviewed your credit report and corrected any errors, the next step is to ensure timely payment of your bills and EMIs. Late payments can have a significant impact on your CIBIL score. Setting up automatic payments or reminders can help you stay on top of your bills and avoid late payments.
Another tip to improve your CIBIL score is to maintain a healthy credit utilization ratio. Your credit utilization ratio is the amount of credit that you have used as a percentage of your total credit limit. Maintaining a low credit utilization ratio, preferably below 30%, can positively impact your CIBIL score.
Finally, limiting the number of credit applications you make can also improve your CIBIL score. Each time you apply for credit, it is recorded on your credit report and can negatively impact your CIBIL score. Therefore, it is essential to only apply for credit when necessary and avoid multiple credit applications within a short period.
Once you have improved your CIBIL score, you can consider applying for a Bajaj card. The Bajaj card is a digital card that allows you to convert your purchases into easy EMIs. The card is linked to your credit limit and can be used to make purchases at any partner store or website. Here are the steps you can follow to get a Bajaj card.
Step 1: Visit the Bajaj Finserv website and click on 'Apply Now' for the Bajaj card.
Step 2: Fill in your personal and contact details on the application form and submit it.
Step 3: Bajaj Finserv will verify your eligibility for the card and approve it within a few minutes.
Step 4: Once your card is approved, you can activate it by logging into your account on the Bajaj Finserv website.
Step 5: You can use your Bajaj card to make purchases and convert them into easy EMIs.
Apart from availing a Bajaj card, there are several other benefits of EMI options. Here are a few reasons why you should consider opting for EMIs for your big-ticket purchases:
1. Affordable and Convenient: EMI options allow you to pay for expensive items in easy installments, making it more affordable and convenient.
2. No Need for a Large Upfront Payment: You do not need to pay the entire amount upfront, freeing up your finances for other essential expenses.
3. Budget-Friendly: EMI options come with fixed monthly payments, making it easier for you to budget and plan your expenses.
4. No Impact on Savings: Opting for EMIs does not impact your savings, as you can choose the tenure that suits your financial situation.
5. Can Build your Credit: Regular and timely payment of EMIs can positively impact your CIBIL score, improving your creditworthiness in the long run.
In conclusion, EMIs have transformed the way we purchase big-ticket items and have made it more affordable for people to achieve their dreams. However, availing an EMI option requires good creditworthiness, reflected in your CIBIL score. Improving your CIBIL score takes time and effort but is crucial for availing loans and EMI options. Once you have improved your CIBIL score, you can consider applying for a Bajaj card, which can make your purchases more affordable and convenient. Remember to always choose a repayment tenure that suits your financial situation and budget.