{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/impact-of-two-wheeler-loan-on-your-credit-score\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/impact-of-two-wheeler-loan-on-your-credit-score\/","headline":"Impact of Two-Wheeler Loan on Your Credit Score","name":"Impact of Two-Wheeler Loan on Your Credit Score","description":"Although most Indians ride two-wheelers, not every person can afford to buy a two-wheeler by paying a lump sum. This is why they opt for the more convenient option, i.e., apply for two wheeler loan. But there’s one question that looms over every customer\u2014how does a two wheeler loan impact your credit score? If you’re...","datePublished":"2022-04-07","dateModified":"2022-12-20","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/two-wheelers-credit-card-score-1.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/two-wheelers-credit-card-score-1.jpg","height":400,"width":1060},"url":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/impact-of-two-wheeler-loan-on-your-credit-score\/","about":["Manage your Finance"],"wordCount":738,"keywords":["apply for two wheeler loan","two wheeler loan","two wheeler loan interest rate","two-wheeler loan online"],"articleBody":"Although most Indians ride two-wheelers, not every person can afford to buy a two-wheeler by paying a lump sum.This is why they opt for the more convenient option, i.e., apply for two wheeler loan. But there’s one question that looms over every customer\u2014how does a two wheeler loan impact your credit score?If you’re wondering the same, read on to find out the answer.Understanding the Loan StructureLeading financial institutions provide a fixed duration for loan repayment. The most popular and preferable loan repayment method is Equated Monthly Installments (EMIs).But approving a loan, banks\/lenders follow a system to verify the applicant’s creditworthiness. Based on this system, the financial institution must evaluate an applicant’s transaction records obtained from an organization named CIBIL.These records are eventually translated into a 3-digit credit score known as the CIBIL score. Now, if you apply for two-wheeler loan, here are some of the key factors that can affect your credit score. Let’s check those out.On-time Payment of EMIsWhen you take a two-wheeler loan, you need to repay within a given duration through EMIs. The best way to maintain a good CIBIL score is by paying the EMIs on or before the due date. If you fail to do so, the debt will accumulate, resulting in higher interest rates.Duration of Credit HistoryBanks\/lenders keep track of your credit history in detail. If you can show a good repayment history, it can positively impact your score. Banks usually provide two-wheeler loans for a period of 12 to 48 months. Now, if you decide to repay the loan within 36 months and manage to make all the payments on time, this will reflect on your report and automatically improve your CIBIL score.Credit MixTwo-wheeler loans help customers display the much-needed credit mix in their profile. A good credit mix is ideally a combination of loans and credit cards. Individuals having a credit mix generally notice faster growth in their credit score.To cite an example, let’s say you currently have a home loan, but you also need to buy a bike. In this case, a two-wheeler loan is a better option than getting a personal loan. This is because two wheeler loan interest rate are relatively lower with less strict credit norms. If you’re looking for a feasible lender, go for IndusInd Bank, as it guarantees quicker approval complemented by minimal documentation.ConclusionRemember, your CIBIL score is a crucial factor in securing loan credit. However, you can always tone down its monopoly by selecting the right lender.Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}