February 19, 2024
How to get a Personal Loan with a Bad Credit Score?
Financial emergencies may knock on one's door without any prior notice. Instant Personal Loans and Gold Loans are the immediate solutions. However, getting a Personal loan with a bad credit score can make things painful and challenging.
Lenders believe that a person with a good Credit Score ensures timely payment without any risk. Whereas, a person with a bad Credit Score must have shown inconsistency or made any default that impacted his/her credit score.
We are here to help you get a Personal Loan with a Bad Credit Score!
First things First! Let’s understand what a Bad Credit Score means in simple words -
A Credit score that lies between 300 - 550 is considered to be bad. A score lying between 550 - 650 is average, 650 - 750 is good and anything above 750 is excellent.
A Credit score could be poor due to any of the following reasons -
1. Late/ Missed Payments
2. High Credit Utilisation Ratio
3. Hard Enquiries
4. Over Obligation and more.
We’ll now answer your question - How to get a Personal Loan with a bad credit score?
1. Check your CIBIL Report - Find out the root causes that impacted your CIBIL Score severely and try to improve them one by one. Ensure that you don’t commit the same mistakes and abide by the terms and conditions of your existing obligations to improve your Score gradually.
2. Show your Income Stability - When you want the lender to trust you with an instant loan for salaried, you need to showcase your payslips or any other evidence that shows you are eligible to repay the loan timely without any inconsistency or fraud.
3. Apply for a smaller Amount - Once, you’ve worked on improving your CIBIL, and have been approved for a smaller Instant Personal Loan, then repay the loan as per the agreement without any fault. This will in turn boost your credit score.
4. Request or NA/ NH - In case, you have no credit History in the past 36 months, your CIBIL report may show Not Available/ No History. Make sure that you inform your Credit inactivity to specific lender to approve your Instant Personal Loan online for Salaried or in any other case.
Conclusion
In conclusion, your credit score plays a critical role in securing a loan from an NBFC. But don't be disheartened if your current score isn't where you want it to be. With discipline, consistency, and the right strategies, you can improve your credit score over time.
Remember, small changes can make a big difference in the long run. Your dream of securing an NBFC loan can become a reality with a little effort and dedication towards improving your creditworthiness.
If you are seeking an instant personal loan then -
You should consider Nitstone Finserv which provides Quick Approvals, Gold Loans and Instant Personal Loans disbursement within 24 hours and makes your journey hassle-free with endless financial opportunities.
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