People may have more than one Personal Loan account as there is no specific limit on having multiple Personal Loans. However, managing these accounts effectively at the same time is not easy. But these accounts can be managed easily by following the below-mentioned simple and easy tips.
Don’t apply for additional credit
If you already have multiple Personal Loans, you should not go for more credit. It is not advisable at all to have more credit when you are having a problem in managing your old accounts. It will only make your condition worse and will increase your burden further.
Clear loan EMIs on time to maintain a good score
When we Get a Personal Loan, we need to pay the equated monthly instalments (EMIs) at regular intervals. If you miss even one single payment, that can create further problems in managing Personal Loan accounts. If you want to maintain a healthy credit record and have an ideal score, then you need to pay all the payments on time without fail. Making timely payments will help you build a healthy credit score which will assist in getting better approval for future loan applications. You can also apply for the debt consolidation loan in future to handle your multiple Personal Loan accounts.
Choose a top-up loan to pay off your existing loans
You can apply for a Home Loan top up loan to pay off your all Personal Loan dues. However, this facility can only be availed by the individuals who have a running Home Loan in their name. A Home Loan Top Up is a secured loan, hence, the interest rates on these loans are always lower than that of Personal Loans.
Use your savings or additional income to prepay your loans
You should try to save as much money as you can to easily pay off the Personal Loan accounts. If these loans will keep on piling up, then they will ruin your credit score. It’s advisable to save any additional income like bonus, incentive, etc. or your existing savings for prepayment of your high interest rate Personal Loans if it makes sense.
Close your existing Personal Loans before applying for a Credit Card
Personal Loans are a high cost credit facility. If you are planning to get a new Credit Card, it’s wiser to close your existing Personal Loans first to reduce your debt burden.
Know your deadlines
Keep track of the deadlines or the due dates of the EMIs payment. Make it a habit to keep all the dates noted somewhere so that you can easily remember them and make the payment without fail. When you have multiple Personal Loan accounts and all the accounts have different due dates all over the month, it is very difficult for anybody to manage these due dates and remember them easily. It is very natural to miss the payment in that case. You can use your phone to create reminders for EMI due dates. You will always get a notification through message or email from the banks before the due dates of your EMIs reminding you of making payments. You can also choose to put your Personal Loan payments on an Electronic Clearance system or ECS mandate so that the EMIs get deducted at a given date from your bank account. This way you can be rest assured that all payments are done on time.
Set a strategy
You must be determined about managing your Personal Loan accounts when you take them starting. You must set a strategy on how and when you are going to pay off these loans. Manage your budget in such a way that you don’t miss paying EMIs on the given date. Set a strategy to pay off these loans one by one as and when you get the opportunity to do so. You can see which Personal Loan has the lowest interest rate and pay off that account first. You can also think of Applying for Bajaj Finserv Personal Loan or another low interest rate Personal Loan to pay off your existing high cost loans.
Never miss making payment
Make sure you never miss any payment. Personal Loans involve high interest rates. Missing even a single EMI means additional penalty and impact on your credit score. That is the reason one should never avoid making these payment deliberately otherwise these multiple loan accounts will keep on piling and one will never be able to pay off them.
We hope these tips will be beneficial for you in many ways if you have multiple Personal Loan accounts and are finding it difficult to manage them efficiently.