Getting a personal loan is not a difficult task, but it becomes arduous if you have a bad credit history. A credit score is the most critical metric used by lenders to analyze your creditworthiness. Having a 750 score or above is considered a good score for getting loans approved. However, not everyone can maintain a good credit score. It seems like you have been looking for easy bad credit personal loans and thus has landed up here. A low credit score indicates the low repayment ability of an individual.
Many lenders are hesitant to lend to such people as there is a higher risk of them defaulting on the payments, and hence these individuals find it challenging to find a lender who will offer them a loan. If you are also among them, luckily, you have six alternatives to get a loan- broaden your search horizon for loans, discuss with your lender, opt for secured loans, apply for a joint loan or add a guarantor, take a loan from an NBFC or P2P lending platform, go for a smaller loan amount. But before you proceed further, remember it is prudent to note that you should always first work on improving your credit score.
How to get a personal loan when your CIBIL score is poor?
While a high CIBIL score of 750 or more makes you an ideal candidate for all types of loan, a CIBIL score of 550 or less is considered poor and have a higher chance of rejection. But many financial institutions and lenders don’t just consider CIBIL score to lend you a personal loan. There are some other factors like your bank balance and job security based on which your application can be accepted. Yes, you read it right! Though the rejection rate for low credit score applicants is higher, it is not impossible to get a loan either. However, you would need to take the following measures:
Show the evidence of your adequate disposable income
No matter why you have a low credit score, the lender will ask you to provide evidence of your stable income and job security to ensure that you can repay the personal loan EMI on time. The lender will look into your application, and if it seems genuine and favourable, he may approve your loan despite your low credit score. Lenders also consider this method even for individuals who are new to credit or do not have any credit history.
Consider applying for a low loan amount
If you have a low credit score and ask for a high personal loan, you are perceived as a high-risk candidate by a lender. Considering a lender’s point of view, your probability of defaulting on loan repayment is higher. However, if you reduce the amount of loan you are seeking, there are chances that a lender will approve your loan request.
Get a or add a guarantor
Another way to get easy bad credit personal loans is to add a co-applicant or a guarantor. But remember, the person you are adding should have a good credit score. A joint loan is the best and easiest way to get a personal loan faster. You need to convince a co-applicant, confirm with your lender, and get the KYC formalities done, and you are done!
Besides these methods, you can even request your existing lender to consider your case with an NA or NH in your credit report. This will mean that you don’t have any credit score in your CIBIL report. Hence, there are multiple ways to get a personal loan, even if you have a low credit score. Nothing can stop you!
