Let’s get one thing straight. Bad credit score and loans do not go hand in hand. That’s like the proverbial fork in the road, or even a dead end if you will.
Lenders take a risk when they give away loans. What if their borrowers default? Then they may never get back their money, unless of course there’s a security. In case of personal loans, since they are unsecured loans, the risk is greater. That’s why more emphasis is given on your credit score. It needs to be of a sufficient level before anyone will give you loans, especially personal loans.
However, it is not impossible to get personal loans in case your credit score is low. There are still some things you can do to prove that.
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Prove that your income is enough to support EMI payment: This is one of the most important steps you can take. A lender may just accept to give you a loan if you have a steady job with a salary to guarantee you’ll pay back the loan. However, you may still have to pay a higher interest.
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Consider a lower personal loan amount: Can you do with a small loan amount? If you can, consider that seriously because without most lenders may not consider your case if you have a low credit score. However, they can if you need only a small loan that is of less risk to them.
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Take the help of a guarantor or a co-applicant: Doing this makes the likelihood of getting the loan higher. That’s because in case you can’t give back the loan, your guarantor will have to.
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Tidy up your credit report: Your credit score is low because it's in a mess. Consider taking time off to clean it. If none of the above steps work for you, this one will even though it’ll take much more time.
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