Two of the most critical metrics a loan company uses to assess the creditworthiness of a person. A mark of 750 or higher is considered fine and useful for the quick acceptance of loans. Nevertheless, it is not easy for anyone to sustain a successful loan outcome because it calls for planning, fiscal control, and, most importantly, ample cash flow to repay indebtedness on time.
- Expand the credit quest scope
The cut-offs used in credit ratings will be different with various borrowers. Radhika Binani, Chief Marketing Officer, Paisabazaar.com says: “Whoever loans low credit scores will widen their scope to find lenders providing loans to those with low credit scores, the easiest way to do that is to have a loan applicant eligible for loans with a lower credit rating.
- Secure loans alternative
Those who reject unregulated loans such as credit cards and personal loans or are paid extremely high-interest rates due to poor ratings are permitted to apply for secure loans. Loans backed by appropriate collaterals with ample liquidity are less expensive for lenders. Hence the credit score is less important when accepting the loan proposal for these secured credits.
- Request or add a guarantor for a joint loan
An additional way to get a loan is by opting for a joint loan, with a poor loan ranking. You may apply for a loan hereby collaborating for a decent credit record for others (spouse or family member). It increases the probability of acceptance of credit as the other party co-applies to the low credit score.
- Take a loan from a lending platform NBFC or P2P
When banks carry out stringent credit report assessments, which may also often lead to challenging investigations, the credit score can be downgraded. Therefore, approach non-bank finance companies (NBFCs) rather than banks, because the former has more relaxed policies concerning people with or without a loan value. The fact that these institutions charge far higher interest rates than the banks is, though, the trap.
- Opt for a lower limit
When you have no decent credit score, you should take small loans such as a personal loan to make a good credit score daily. Through this process, you will slowly increase the lender’s life of a bank or some other financial entity and ultimately take bigger lending.
