Finance companies measure people’s loan repayment capacities by checking their credit scores, provided by credit bureaus like CIBIL and Experian. These 3-digit numbers summarise an individual’s credit history, credit amount, repayment history, and other vital details. They help a finance provider determine the risk factor in granting a Personal Loan since these are unsecured loans and lending companies have no assets to fall back on in the case of default. While you must have heard that getting an instant Personal Loan with a low credit score is impossible, it is not entirely true. Implement these measures to get a loan despite a poor credit score.
Pick a Financial Institution that Asks for an Experian Credit Score
An individual’s credit score differs from each bureau, depending on the credit bureau’s methods and policies and the available data. Therefore, those ineligible for a Personal Loan due to a low CIBIL score must try applying to another NBFC that accepts other bureau’s credit scores, such as Experian. For example – Clix Capital considers an Experian credit score of 630 for a Personal Loan.
Prove High Income to Support Timely Payments
Although lending institutions consider the applicant’s monthly salary to determine eligibility, mentioning all additional income sources will maximize the chances of approval. Communicate a steady income and stable job to the finance provider, convincing them to grant an instant Personal Loan with a low credit score.
Apply for a Smaller Loan
Applying for a bigger loan with a poor credit score means a higher risk to the financer check credit score. Having a low credit score indicates a higher chance of repayment default. Consequently, the loan providers do not feel comfortable sanctioning a substantial amount to low-score individuals. On the other hand, they may agree to take the risk if the loan involves a smaller amount. However, be ready to pay a higher Personal Loan interest rate in such a situation.
Ensure No Errors in the Credit Report
A credit report might contain errors, especially when the latest data is not updated in the records. Such mistakes take a toll on the credit score without fault on the applicant’s part. That is why checking the credit report regularly and rectifying any errors on time is essential to maintain a decent credit rating. Doing that boosts the credit score and improves eligibility for an instant personal Loan with a low credit score.
Request Considering NA or NH in the Credit Report
NA or NH on the credit report indicates a lack of credit or no credit activity in the last three years. In that case, the applicant will have no credit score in the report. Such individuals may negotiate with the finance provider regarding their credit inactivity. They may agree to offer a loan but at a higher Personal Loan interest rate.
These simple measures help you get an instant personal Loan with a low credit score. However, ensure having sufficient funds to repay the loan. If not, the credit score will drop further. For that, use a Personal Loan EMI Calculator to estimate the EMIs and plan the repayment accordingly. Your poor credit score doesn’t have to stop you from obtaining a Personal Loan. Do you want a Personal Loan but are rejected by financial institutions because of a poor credit score? Apply now for immediate approval using the tips mentioned here.
This guide will show you how to get a personal loan with bad credit. With top personal loan companies that offer a wide spectrum of services and products, you can find the perfect loan for your financial needs and choose the best payment plan for you. How to Get a Personal Loan With Bad Credit