Personal loans are unsecured loans that can be availed to fulfill any emergency need for funds such as medical emergency, wedding plans, vacation plans, etc. While availing of this loan, you need not provide any security or collateral unlike other types of loans such as gold loans. Personal loans are more convenient because of minimal paperwork and the fast process of verification. However, lenders usually check for credit scores to know the risk that they bear while lending you money. Likewise, Buddy loan is one of the best third-party aggregator platforms that offer instant loans online for different categories such as personal loans, marriage loans, medical loans, etc. to meet different needs and requirements of the people.
Even if this word seems familiar, you might still be wondering what exactly is a credit score. So, let's first understand what a credit score is.
What is a Credit Score?
A credit score is a 3-digit number that ranges between 300 and 900 that shows the creditworthiness of an individual. If the credit score is above 700, it indicates that the individual has a good credit history and the ability to repay the dues on time. If it is
between 300 to 500, it indicates a poor credit score. This increases the chance of your loan getting rejected.
You can still get a long term personal loans even if you have a bad credit score. Wondering how? Continue reading to know more.
Here is how you can still get a personal loan when you have a bad credit score.
When you do not have a good credit history, it can be challenging to get your loan approved. Here are a few alternative ways you can get a personal loan with a low credit history:
1. Show that your income can support you to repay your loans: If you get a hike in your income or if you have an additional source of income, then show that as evidence to repay your loans. In that way, the lenders will know that you have a consistent flow of income and a secure job which in turn increases the chances of your loan getting approved.
2. Avail for a low loan amount: Since you have a low credit history, the lender may take you as a high-risk borrower if you apply for a high loan amount. Thus, when the personal loan amount is lower, the lender may consider granting you the loan as it reduces the risk of default and makes the repayment faster.
3. Get a Guarantor or a joint loan: Get yourself a co-applicant or guarantor who has a good credit history as the lender will get to know that you will repay your loans on time.
4. Clear errors in your credit report: Have a habit of checking your credit report regularly to make sure there are no errors or mistakes to avoid any unwanted issues. This will also help you to increase your credit score.
5. Speak to your lender to consider an NH or NA in your credit report: An NH or NA in your credit report indicates that there was an absence of previous credit activity and a lack of credit activity in the last 36 months. Hence, you will not have any credit score in your credit report. So, convince your lender as to why there was inactivity. The lender may consider offering the loan but may charge a higher interest rate.
Conclusion
The above alternatives will surely help you to avail of a personal loan even if you have a bad credit score. However, you must make sure that you have enough money to repay all your debts on time without any delay. You can also choose to collateral to get a personal loan for long-term when you have a bad credit history. Buddy Score is one of the best platforms that allow you to check your credit score for free in just a few minutes.
These are personal loans issued by private institutions such as banks.
It is a type of personal loan that can be carried with a very low rate of interest.Why get a loan for a holidayHolidays are always the most exciting time for a person to go out on a trip but due to several reasons such as strain in financial condition for which a person is not prepared.
The Swift loans, Australia found out that more than 20% of the people have a tight bank account and cannot spend in a carefree way and one may find it difficult to enjoy the holiday without an additional source of money.A holiday loan can help you overcome all the problems, especially during festivities that come along this time of the year.
A holiday loan can grant you access with the income of cash from a genuine source which can be repaid in the upcoming months when your bank account is finally stable, and all your budget had bounced back to normal.The main advantage of taking loans from the Swift loans that they charge a low rate of interest and will make your debt easier to handle.What are travel loansTravel loans are nothing but personal loans taken from a private institution for travelling purposes.
Travel loans are provided for both domestic as well as international travelling by lenders.
The interest rate may be variable which is depended upon the terms and conditions of the lender.
Short-term loans come in a variety of forms that include short-term payday loans or cash advance loans.
Other traditional short-term loan forms include credit card cash advances, personal loans, and installment loans.
Since many people cannot qualify for a traditional or bank loan due to low credit scores or cannot get cash from their credit card, they consider a short-term payday loan online.
Short-term payday loans are for emergency situations like emergency car repairs, utility or electricity bills, medical bills, or just when you do not have the cash to pay for simple groceries or other necessities.
Short-term payday loans can cover you in emergency situations until your next payday.Read more
