Lenders use your credit score to determine your ability to repay a loan. This score summarizes your credit history, including the amount of credit you have obtained, how you have repaid it, and other factors. All of this helps a lender determine whether or not granting you a personal loan is a risky proposition because a personal loan is an unsecured loan with no other assets to fall back on. While it is true that you cannot get a personal loan with a bad credit score, this is not entirely true with online bad credit personal loan services such as Personal Loan Pro.
Tips for Getting A Personal Loan Online With Bad Credit
1. Show That Your Earning Can Support EMI Payments
Even if you have a low credit score, a lender may consider your application for a personal loan if you have received a raise in your salary or have an additional source of income. If you can show the lender that you have a stable job and consistent income, they are more likely to approve your loan even if you have a low credit score. When you prove your eligibility in this way, you may have to pay a higher interest rate.
2. Ask For A Lower Personal Loan Amount
If you request a large personal loan with a low credit score, your lender may view you as a high-risk candidate. Your chances of defaulting on the loan repayment are much more, according to the lender. If the personal loan amount is lower, the lender may be more likely to approve the loan request. In addition, repaying a lower amount will be much easier.
3. Apply With A Co-Applicant Or A Guarantor
If your CIBIL credit score is low, you can apply for a personal loan with the help of a co-applicant or guarantor. Of course, you’ll need to ask the other applicant ahead of time, as they’ll need to complete KYC procedures and provide signatures as well. The main advantage here is that if your lender learns that the co-applicant or guarantor has a consistent income and a better credit score, they are much more likely to grant you a personal loan. Visit to get no hard credit checking personal loans with the approval in no time at the site of Personal Loan Pro.
4. Correct Mistakes In Your Credit Report
With a low CIBIL score, you may have difficulty obtaining a personal loan. However, it is possible that your credit report contains misreporting or errors. Most of the time, this occurs because your record has not been updated with the most recent information. While it is not your fault, mistakes like these can lead to problems. Check your CIBIL score on a regular basis to stay ahead of the problem. If you find any errors, make sure to notify the appropriate authorities and resolve them as soon as possible. Finally, it will benefit you by raising your credit score, making you a more qualified candidate for a personal loan.
5. Request Your Lender To Consider A NA or NH In Your Credit Report
The NA or NH on your credit report indicates that you have had no previous credit activity or a lack of credit in the last 36 months. In this case, your credit report may not show a credit score. So, you can try to contact your lender about your credit inactivity. The lender will most likely provide you with this loan at a slightly higher interest rate.
Getting a Personal Loan With a Credit Score of 550
Getting a personal loan with a credit score of 550 is difficult, but not impossible. The loan application rejection rate is higher, but if you have a steady income and work for a reputable employer that provides job security, the lender may consider advancing you to a loan with a higher interest rate. Please keep in mind that different lenders have different policies on this. The minimum credit score is 750 for a personal loan.
If you have previously defaulted on a loan and cannot provide a justifiable reason, or if the loan amount is bigger, the lender may reject your personal loan application. If you have a credit score of 550 and need a personal loan, it is best to try to raise it to 750 first before applying to multiple institutions. You can also ask a close family member with a good credit score and consistent income to be the primary applicant.
Eligibility For A Personal Loan With A Bad Credit Score
Personal loan eligibility is heavily influenced by your credit score. Other factors, however, play a significant role in the approval of your loan application.
- Use a personal loan eligibility checker to determine the loan amount you can receive and the EMIs you can expect to pay.
- Check your credit score. This can be done online. A medium to good credit score increases the likelihood of obtaining a personal loan. With a low credit score, you may still be eligible for a loan, but at a much higher interest rate.
NBFCs are your best bet for obtaining a personal loan with a low credit score because they have more flexible eligibility criteria than banks. If you have previously defaulted on a loan for legitimate reasons, be sure to explain this to the lender. Lenders may consider offering you a personal loan at a lower interest rate if the reason is justifiable, such as a medical emergency.
Final Words
A cash crunch can be horrific, but you can use instant personal loans to help you pay that emergency bill. Individuals may end up with a bad credit score for a variety of reasons, and the process of moving from a bad credit score to a good credit score takes time. However, the need for credit may arise at any time. If you have a low credit score then do not worry, with Personal Loan Pro personal loans you can still get a loan for bad credit.