When it comes to personal loans, understanding the difference between secured and unsecured loans is key to making informed financial decisions. Personal loans offer a flexible way to borrow money for various needs, from consolidating debt to financing home improvements.
Personal loans are a convenient financial tool, offering quick access to funds without the need for collateral. However, lenders use your CIBIL score (or credit score) to gauge your creditworthiness before approving your loan application.
A strong credit score is important for good financial health. It impacts your ability to get loans, mortgages, and even jobs. Yet, many people struggle with poor credit scores due to past mistakes or a lack of understanding about credit management.