Young age brings with it several responsibilities. You may have started earning and may not possess major financial responsibilities at the moment, but you should start planning for the future in more ways than one. Firstly, you should invest in getting yourself basic security in the form of insurance. Secondly, you should aim at building up your credit history, since this will serve you well in the near future. Why is building up a credit history so important when you are young? Consider a few scenarios.
Rajesh (fictional name) is a young professional who started working at the age of 22 after completing graduation. He needs to buy a new laptop and has been saving up money for the same but finds that he does not have the entire amount. To fulfill his needs, he takes a personal loan and then buys the laptop, repaying the same in convenient monthly installments. This helps him build up his credit score to a good figure and his overall credit history as well. Later on, when he reaches the age of 35 and wants to take a home loan, the lenders scrutinize not only his age and income eligibility but also his credit score and history. Since he has already taken and repaid a personal loan on time, he has built up a good credit history and score, enabling him to obtain the home loan easily.
Rakesh (fictional name) is another young professional who started working at the same age but has never taken a loan. He has instead waited for several months before buying a laptop. However, when he wishes to take a home loan at the age of 35, his application takes more time and is declined by several lenders due to his lack of credit history and credit score.
Which one do you wish to be? This clearly illustrates the importance of building up a credit history when you are young, in order to reap the benefits in the future.
How can you build up your credit history easily?
You can build up your credit history by applying for a personal loan to meet varying requirements, including the following:
- Educational costs
- Buying a two-wheeler
- Healthcare costs
- Home renovation and repairs
- Buying appliances
- Taking care of wedding costs
- Covering travel expenses
These are some of the multiple reasons for which you can apply for a personal loan. Now how do you get a loan sanctioned quickly and with minimal hassles? You can simply get your loan from a reputed personal loan app like LazyPay. This will help you get access to credit for meeting your requirements and also build up a healthy credit history that will get you loans more easily in the future.
How LazyPay Helps Customers
You can also check out offerings like buy now pay later (BNPL) at LazyPay, where you can purchase something and repay the same after 30 days if you have completed your KYC verification; else the repayment period for the same is 15 days. This will enable the development of your credit history as well since you can demonstrate timely repayment and increase your credit score alongside. LazyPay offers credit limits that you can obtain in the form of a personal loan via their XPress Cash offering. How is this possible? You can simply register after downloading the mobile application and then check your credit limit or eligibility by entering your PAN details, and some personal information. You can then complete your one-click KYC for activation of your enhanced credit limit. You can thereafter withdraw money from this credit limit whenever you require funds.
Interest is payable only on the amount that you actually withdraw and not on the entire credit limit amount. The rates of interest are competitive and there are tenures between 3 and 24 months. You can thus withdraw money to complete essential purchases and meet other needs and repay the same in a timely manner in order to build your credit score and history alike. LazyPay functions as a one-stop personal loan app where you can also track your loan and repayment details without any hassles whatsoever. This keeps you in the loop while helping you carve out your financial foundation for future credit at a very young age itself. The application procedure is a one-time mechanism and is quite simple and hassle-free. In fact, you can get the money disbursed in a super quick time as well. This makes the entire personal loan procedure convenient and comfortable for loan seekers.