The ultimate guide to achieve a personal loan without a soaring Credit Score

The ultimate guide to achieve a personal loan without a soaring Credit Score

In this age of demonetisation movements, long queues, accelerating demands and risen stakes, we often find ourselves struggling, balancing the beam of our daily expenses as well as the necessities to be fulfilled. In order to sustain in this fast pacing era, personal loans efficiently come up to the rescue. Unsecured personal loans are easier to get since no collaterals are needed, a lesser number of documents are required and people with low annual income can also be granted such loans.

Unfortunately, gaining access to such loans becomes a cumbersome task when we scored badly on the credit report.

In my previous blog, we discussed how not paying your EMI's/Creditcard Dues affects your credit score and how you can apply for an unsecured debt consolidation loan online but what if I say you can also apply for a personal loan online with bad credit. 

In order to simplify the drill for you, we have organised a walk through all the prepping up key points needed to gain a personal loan for people with bad credit.

What is a Credit Score?

Credit score basically represents the creditworthiness of the person. It is a numerical expression based on a level analysis of a person’s credit files. It verifies whether or not the borrower is eligible for gaining a personal loan or not. Whenever an individual applies for a personal loan, his information is evaluated and returned as a three-digit score to the respective lender or bank and decides approval of his loan application. It informs the lender of your status and directs them towards how likely you are to return them the due amount.

The Credit scale ranges from 300 to 900 and generally, a score above 750 achieves greater chances of loan approval. It is a credit score clubbing together the past credit and debit records, accumulated from the information sources available to the registered user. When we talk about banks, they only prefer those cases having a credit score of more than 750. Main attributes that contribute towards calculation of a credit score are listed below-

  1. Your total available credit balance. 
  2. The balance between your secured and unsecured loans.
  3. A number of loans and credit cards you have.
  4. Credit Utilization

A credit scoring algorithm is used to track and surmise a score for your loan repayment credibility. 

How do you land up getting a bad credit?

A disheartening score can lead to loan rejections by a majority of banks. An online score with bad credit can be a result of one of the following factors-

·         When the borrower has been listed as defaulter for loan repayments

·         Has never taken up a loan in near future and no historical data exists for evaluation

·         Multiple rejection scenarios faced

 

How can you generate your Credit Report?

You can easily generate your credit report and check your credit score online. From Experian you can easily generate your credit report to take control of your finance, it will help you to improvise your financial position and fulfill your dream to buy your dream home or to make your children study abroad.

To generate your credit report online, click here.

How to improve your Credit Score?

Never let the past clog into your future and pay vigilant attention to the following keywords-

·         Clear up the due credit amount 
You should not be held guilty of not paying your past dues and should have received a clean chit from your previous bank history records.


·         Rectify data entry errors 
Be very specific while mentioning your details and also cross check those extracted by the websites or organizations. Even a single misplaced digit can land you into trouble.


·         Use the oldest credit card 
Using the oldest card with descriptive past records and frequent usage with cleared, timely dues will aid you to score high on the credit charts. 


·         Be aware of your credit score and history
Being a vigilant borrower will always help you in the long run with an active approach of punctuality in payments.


You can also take the friendly advice here at Credit Sudhaar to turn the table and achieve higher credit. It helps individuals to improvise their credit score, manage your credits and save money. They have different credit score plans available on their website so that they can help you to maximize the approval rate with lenders.



How to get a personal loan with bad credit?


The admirable technological achievements of our community have aided in widespread increment of hassle free growth. Getting a loan with a bad credit has been made lenient by peer to peer lending platforms like Rupaiya Exchange. This fintech startup connects private lenders who want to invest money and borrowers looking for easy loans. They look at borrowers beyond their three digit scores and also focus on other data extraction techniques like social behavior or profile checks including education, schooling upbringing, etc. to predict their repayment behavior. An engaging use of technology is employed that brings out the best of potential borrowers breaking the traditional barrier of credit evaluation system which helps


The advent of technology has always made lives easier and can now help you get a personal loan even with a bad credit score. Your search for the ultimate friend endshere. In order to achieve a loan for people with bad credit, peer to peer lending companies in India have been cited as one of the best options to avail. They generate a comprehensive score. The credit system does not demarcate the loan approval judgements till the borrower’s credit score but looks above and beyond, but this does not undermine the importance of maintenance of a good credit score. The precedent points should always be kept in mind in order to be listed as a reliable borrower and a trustworthy ally.