As a doctor with your own practice, your goal should be to constantly work towards improving the efficiency of your clinic, and bettering the quality of your diagnosis and treatment. To do this, you may want to buy high-end equipment including MRI machines and CT scanners, or double the size of your clinic to accommodate more patients in one go. Either way, you can use a Loan for Doctors, such as the one offered by Bajaj Finserv. This will give you access to a high loan amount, flexible tenor, Flexi Loan facility and online application.
But, before you take any loan, you must ensure that you have a good credit score. A credit score below 750 is considered to be less than ideal as per CIBIL norms, as it shows that you are not responsible with borrowed funds or don’t have a credit history. As a result, lenders might hesitate to give you a loan. So, if you find that your credit score is less than ideal, here’s how you can improve it.
1. Consolidate Your Debts and Repay Them
You have used your credit card to purchase equipment for your clinic or used it to buy expensive medicines to stock your pharmacy. While this may have been your only avenue of financing these needs at the time, if you have not been them off in full, you may be unpaid debts. Several unpaid debts, be it credit cards or term loans, can be expensive, put a strain on your finances and become difficult to manage. Instead of letting them poorly affect your credit score, you can take a debt consolidation loan.
Additional Read: How to consolidate loans from different lenders
This will make your debt easy to manage and affordable to clear. Once you repay your outstanding debt, your credit score will instantly show an improvement. Then, as you repay the debt consolidation loan, your score will improve further. Bajaj Finserv offers India’s fastest personal loan especially customised for doctors’ unique needs. These easy loans are quick to apply for and are disbursed to your account in under 48 hours* of loan approval.
2. Lower Your Dependency on Multiple Credit Cards
A high debt-to-income ratio signifies that you aren’t good at living within your means. And, using several credit cards contributes to this. Additionally, exhausting your credit card limit and not paying off balances in full also leads to a sharp decline in your credit score. Therefore, to keep credit cards from pulling your score down, restrict your usage to one or two cards and pay your bills on time. If you find that you need to extend your credit limit, contact your provider to do so.
3. Don’t Apply for Too Many Loans
If you are contemplating buying a larger plot of land for your clinic, you may have made loan enquiries to see how much you can avail as a loan to buy the property. But, remember that making too many enquires will work against you and will bring your credit score down. To avoid this, do your research online and only apply for a loan judiciously. Websites and tools like an EMI calculator will help you get all the information you need, so you can refrain from filing multiple applications.
4. Refrain from Signing as a Co-applicant
A fellow doctor or a friend can approach you to sign as a co-applicant for a loan that they are taking. Avoid signing if possible, because if your co-applicant delays or defaults on payments, the liability will fall on you, and it will show up as a negative mark on your credit score.
Additional Read: Difference between co-signer and co-applicant
5. Check the Reason for Your Low Credit Score
It is not true that only unpaid dues and debts lead to a low credit score. If you have never used credit, your credit score will be 0. So, when you want to take a high-value loan in the future, you might find it difficult to do so. In order to build your credit score, take an affordable, collateral-free Personal Loan for Doctors and repay it in a timely manner. This will reflect well on your credit score. When you implement these changes to your financial routine, you can improve your credit score within 6 months to a year.
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