Gold loans are a popular financial lifeline for many in Kolkata. When you are in urgent need of money – whether it’s for a medical emergency or for paying educational expenses – pledging your old gold seems like a quick, safe and smart option. But what if you are not able to repay the full loan amount? This is when many people think about settling their gold loan – which means paying a smaller amount than what they were supposed to. Although it might feel like a quick and easy way out, but there is a hidden cost many people overlook: your credit score.
If you are in a tough financial crunch and probably thinking how to settle a gold loan in Kolkata – it is first important to know the impact of the same, and through this blog we will know why selling your old gold for cash could be a smarter and cleaner way out.
In simple words, when you take a gold loan you agree to repay the money along with interest within a fixed period of time. However, if you are unable to repay the full loan amount, the lender in that case may offer a settlement, which means paying a smaller amount than what they originally owed.
When you repay a gold loan in full, it is marked as closed in your credit report – which is a good thing. However if you decide to settle it by paying less than what you owe, in those cases, lenders report it as “settled” instead of closed which gives a clear indication to the future lenders that you did not fulfill your payment responsibility.
A gold loan settlement lowers your CIBIL score because it shows incomplete repayment, and this reduces your chances of availing any kind of credit in the future.
In addition to this, settled gold loan doesn’t go away so easily. It stays in your credit history for up to 7 years, thereby affecting every single financial decision taken during that time.
A Smarter and Safer Option than to Settle Gold Loan in Kolkata:
Taking gold loans might seem convenient at first, but if you can’t pay them in full at once, then it can quietly damage your financial reputation. That’s why if you are thinking to settle gold loan in Kolkata, it is wise to explore better options – like selling your old gold for cash that gives you instant cash without harming your credit score.
At MGS Gold, we believe that your financial choices shouldn’t come with hidden consequences. That’s why we offer transparent and reliable gold buying service in Kolkata where you can easily sell your old gold at the best market rate – instantly and hassle-free!
So why harm your credit score, visit MGS Gold today and experience complete financial freedom.
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