When it comes to availing a quick personal loan, you ought to keep your credit score higher. Yes, when you apply for the personal loan, then your lenders check your credit score as the mirror of your creditworthiness.
If you have a robust CIBIL score of 750 or more, then you can get the loan approval fast and at a lower rate.
Since personal loans are unsecured, the creditworthiness of the lender is decided by factors like higher CIBIL score, stable repayment and employment record.
If you have a lower CIBIL score, then lenders may reject your application. In some cases, if it gets approved, you may have to deal with a higher rate of interest.
But what if you don’t have a poor credit score and you want to get the personal loan?
Read on to know how to get the personal loan with bad CIBIL in this post!
- Prove that you can repay the EMIs on time
After your credit score, it is your income level that determines if you will get the loan approval or not. One of the easy ways to avail a personal loan with bad CIBIL is by proving that you are eligible and can repay the EMIs on time. If you can convince the lender that your income is stable, then you can get the loan approval. One of the personal loan benefits with a known lender is that it offers the facility of the online EMI Calculator. This way, you can use the EMI Calculator and know if you can repay the same with your income level.
- Apply with a co-signer
If you can apply with a co-signer whose credit score is strong, then you may avail the personal loan benefits even with a lower CIBIL score. It will convince the lender that you will not default on the repayments.
- Apply for the lowest possible loan amount
If you apply for a higher loan amount of personal loan with bad CIBIL, then the lender may not approve the request. Thus, the trick here is applying for the lowest possible loan money. It will minimize the default risk of the lender, and it may approve the application quickly.
- Go for a secured personal loan
If you want to avail the personal loan benefits such as a higher loan amount, flexible repayment tenor and more with a lower CIBIL, then you can do that easily. All that you have to do is – pledge collateral so that the lender is convinced that if you don’t repay, it may liquidate the same to recover the loan amount.
- Correct the mistakes on the credit report
Sometimes, you may not be aware, but some wrong entries on your credit report may affect it negatively. Hence, what you can do before applying for the personal loan with bad CIBIL is checking if you have some mistakes on it. Errors and mistakes on the credit report may lead to a bad CIBIL score, and that’s why you need to correct it. You should keep checking your credit report from time to time and know if there are mistakes.
If you are able to follow the discussed tips, then you may avail the personal loan with bad CIBIL. For availing the personal loan benefits of top lenders, you should compare all offers online and choose one that may match your repayment capacity and needs.