I had been facing very big issue of bad credit score of mine. I was not able take any credit cards and I was constantly kept applying for new credit from different sources. It took my credit score further down.
But somehow I got one low interest loan from a source(an NBFC) and its 70% more then the amount I needed for a medical emergency. Now It is a good chance to rebuild the credit score again by repaying this loan on time as its my first credit ever taken, But I was wondering weather
1) Is it a good idea to invest this surplus money so that I can keep getting at-least EMI in return? (EMI is 8% of Principal amount)
2) Just repay the amount as fast I can (I can repay as early as in Three Months) and saves the interest going to be charged, But then I am not sure what effect it will have on my credit score.
3) Keep spending this amount on necessity, and repay the amount using EMI from the monthly salary.(I have to contribute 20% of salary for EMI)
EMI = Easy Monthly Installments
Note: I know that taking loan for investment is not at all advisable, but just to increase the credit score I have to go this long way. I am new to investing, new to credit and I have stable paying job.