5 Ways to Get a Personal Loan Even with Bad CIBIL Score
Personal loans often come with easy approval once the primary eligibility criteria are satisfied. Similarly, an applicants’ CIBIL score also plays a potent role in the approval of the same. Nonetheless, individuals can avail personal loans for bad credit by following a few simple strategies.
Tips to avail bad credit loans
- Co-apply for a personal loan
Co-applying for a personal loan with an individual with a 750+ credit rating improves your chance of a quick approval.
2. Compare between terms offered
The minimum CIBIL scores may vary from one financer to another. Compare the scores set by different institutions to select the one that suits your credit ratings.
3. Rectify CIBIL rating-related errors
Even a minor error in the credit report can hamper one’s score substantially. Consequently, applicants should make it a point to check their credit report at least once a year and check for such mistakes.
4. Aim for liaisons between the financer and the lender
Most financial institutions are more flexible when it comes to extending personal loans to employees of reputed companies. Applicants should figure out if their employee has a tie-up with a said financial institution and take advantage of the same in such a situation. Such liaisons can be highly beneficial for personal loan for bad credit applicants.
5. Back your application with collateral
Though personal loans are unsecured, individuals may back their loan application with suitable collateral. Regardless, they must figure out if their choice of financial institution extends such a facility for accountholders.
Tips to improve your CIBIL score
- Credit card default hampers credit ratings, which is why one must ensure to spend as much as they can repay. Also, make sure not to carry forward the dues to the next billing cycle.
- Loan borrowers should pay EMIs on time. Even the slightest delay or default would hamper their credit score.
- Rectify errors on credit report to improve your ratings immediately.
- To enhance your credit ratings, you may request your credit card issuer to increase its credit limit.
By following these measures, you can improve your CIBIL score significantly. Meanwhile, individuals have the option to avail a personal loan for bad credit to meet their urgent financial requirements.
