How to Get Personal Loans Even With a Low or a Bad Credit Score?

Share on facebook
Share on google
Share on twitter
Share on linkedin

CIBIL score is a 3-digit number that quantifies an individual’s Credit Information Report. It highlights his/her credit mix, repayment history, credit inquiries, etc. 

The score comes as a parameter for financial institutions and helps them to gauge a loan applicant’s creditworthiness effectively.

In most cases, a credit score over 750 is considered to be good and enhances applicants’ chances to secure a personal loan. Though most financial institutions prefer applicants with a high rating, individuals can still avail a personal loan with bad CIBIL

Tips to avail personal loans with a low credit score

Here’s how to avail an instant personal loan with a low CIBIL score.

  • Provide adequate income proof

Sometimes a high salary or an additional source of income helps applicants to secure a personal loan even with a low credit score. However, to achieve that, an individual needs to provide adequate proof supporting the same. 

Furthermore, submitting suitable proof of a stable income and a steady job will help loan applicants’ cause.

  • Settle for a lower loan value

Another way to avail an instant loan without CIBIL score matching the requirement is by settling for a lower loan value. Usually, applicants with a low rating applying for a high-value loan are perceived as a high-risk candidate. 

To remedy the notion, applicants with a poor credit score may avail a low-value personal loan. Consequently, the lender will be more inclined to approve the loan plea and expect timely repayment from such applicants.

  • Co-apply for the credit

Individuals can also avail a personal loan with a poor credit score by applying for it with a guarantor or co-applicant.  Regardless, the guarantor or co-applicant has a steady income and a good credit score.  

It will help applicants to secure a personal loan with a bad CIBIL score and may also help them to negotiate a better rate of interest.

  • Rectify mistakes in the credit report

Like discussed, credit report tends to influence an individual’s credit score significantly. Any discrepancy in the same can erode their score significantly and also lower their chance of securing a personal loan. This is why, before applying for a loan, individuals must eliminate any discrepancy in their credit report so that it does not hamper their score. 

Other than these, individuals should also try ways to increase their credit score to apply for a Personal Loan from financial institutions like Bajaj Finserv at attractive interest rates. 

They also provide pre-approved offers on multiple financial products to offer a hassle-free experience to their customers. Such offers mostly apply to an array of financial products like personal loans, business loans, among others. Check your pre-approved offers by simply sharing your name and contact number.

Tips to improve CIBIL score

CIBIL score is important for personal lending, which is why individuals must make an effort to improve it. 

Here are a few proven ways to do so –

  • Timely repayment of existing loan EMIs and credit card bills.
  • Maintaining a low credit utilization ratio.
  • Maintaining a healthy credit mix.
  • Limiting the number of credit applications.
  • Reviewing credit reports frequently.

These are a few ways to boost your CIBIL score for personal loan and to avail the benefits of the unsecured loans. Individuals should also learn how to check CIBIL score to be aware of their perceived creditworthiness.

Steps to check CIBIL Score 

One can check his/her CIBIL score for free by following these steps.

  • Go to CIBIL’s official website.
  • Look for the ‘Get Yours Now’ button and click on it. 
  • Enter details like name, email ID, password, contact number, date of birth, etc.
  • Click on the ‘Accept and Continue’ button.
  • Confirm the OTP sent on the registered number to complete the verification process.
  • Follow the instructions given.
  • Avail a free credit report and CIBIL score.

One big downside of availing a personal loan with bad CIBIL score is that applicants often have to pay a relatively higher rate of interest. Consequently, they should always try to improve their credit score before applying.