How to avail a Personal Loan with bad credit score?

What is Credit Score?

A creditscore is nothing but a three-digit numeric that shows you creditworthiness. Multiple leading banks, government organizations and NBFCs (Non-Banking Financial Companies) send financial data to Credit Bureaus and they generate the Credit Score. Credit Score is usually figured on the basis of your or any company’s credit handling.

What is TransUnion CIBIL Score?

TransUnion CIBIL Limited which previously known as CIBIL (Credit Information Bureau (India) Limited) is a well-known Indian credit company. The company came into existence in 2000, The bureau handles the responsibility of maintaining credit record of more than 600 million people and 32 million businesses. The range of CIBIL score resides in 300 to 900 ranges, if any score is nearby 900 is equal to a good score. Currently, there are four foremost leading credit bureaus works in India- TransUnion CIBIL, Experian, Equifax and CRIF High Marks. According to TransUnion, around 79% of the loans get approval in case the credit score is more than 750.

Avail Personal Loan with Bad Credit Score

The method of availing this loan is really simple and easier. In a Personal Loan, you no need to give any collateral or security. If you’ve bad credit history or your CIBIL Scores isn’t that high still you can avail a Personal Loan. There are multiple banks and financial institutions permit loans with bad credit history.

  • Get a loan against your present income:In such cases, lenders provide a Personal Loan with higher personal loan interest. Being a borrower you just need to show your current income proof, salary slips, bank statements and income tax returns.
  • Collateral Loan:In case your loan application faced rejection then you have an option of the secured loan as well. Simply, we can say you can go for a Gold Loan as well, in which you just need to pledge your gold and avail funds (after evaluation and verification of purity, lenders sanction your loan).
  • Corporate links with lenders: Being a part of any well-known organization can lets you relish many benefits. If your company has a good tie-up with lenders then there’s a chance of availing a loan at lower interest rates.
  • Adding a Joint Loan with your family member:The lenders can sanction you a Personal Loan if your family member’s credit scores are good and maintained. In such case, you can avail a joint a loan with the help of that family member who’ve got good and highest score.  
  • Guarantor:Mostly people refuse to be a guarantor because if the bank detects any fault in a borrower then you also have to face the legal penalties. If you have a good credit score and you’re ready to take a guarantee of a borrower then behalf of your documents and score, the lender provides a loan.

Bad CIBIL Score’s reasons

  • Constant loan applications
  • High usage of your credit limit
  • Any default in your monthly EMIs
  • Zero credit history
  • Multiple loan rejections
  • Multiple credit card requests