Getting a personal loan if you have bad credit score or no credit is very difficult. As personal loan is an unsecured loan in nature lenders insists on offering the loan to applicants with a good credit score history. This gives them the confidence that the borrower can be trusted with repayments and that they have a reliable creditworthiness.
You can get a personal loan even if you have a bad credit score or no credit. Usually, a score of 700 or above out of 900 is considered to be a good credit score as far as availing a personal loan is concerned but if your credit score is low than that or in case you have no score, in such a situation also one can get this loan.
Below given five useful tips that will help you to get personal loan if you have bad credit score or no credit:
1. If your credit score is bad, even in that situation also you can apply for a personal loan by applying for the same through many NBFCs. There are many financial companies that offers unsecured credit to such applicants who are having a bad credit score. But these lending institutions generally offer a loan to those applicants at a much higher interest rate, which usually increases the overall loan burden.
2. Another effective way that allows you to get this credit facility even with a low score is by adding a co-applicant. With the help of adding a co-applicant, whose is having a regular and good source of income, actually helps in availing this loan easily. Doing so will make your profile worth appealing in the eyes of the lenders.
3. Going for a secured personal loan is also an option here which allows you to avail a personal loan even with a bad credit score. If you choose this option, you need to give the security or collateral to the lender so as to get the loan with a low score. As doing so will make your profile less risky.
4. You may choose to apply for lower loan amount to improve your chances of availing the personal loan. While, extra funds can be borrowed from friends, colleagues or relatives to help you suffice your financial needs.
5. Regularly check your CIBIL score for any mistakes like miscalculations, typo etc. which may be negatively affecting your report. Make sure to report genuine mistakes to the credit bureau as they may take the time to update the report within 30 days.