Your creditworthiness is determined by your CIBIL score. The Reserve Bank of India (RBI) has approved the Credit Information Bureau (India) Ltd., usually referred to as CIBIL, to generate this score for an individual. A genuine CIBIL score ranges from 300 to 900, with 900 signifying the highest level of creditworthiness. The higher your credit score, the more likely your personal loan application will be accepted.
Your CIBIL score is determined by how well you repay your previous debts. You may maintain a high credit score by making on-time payments on all your outstanding debts, such as credit cards, loan EMIs, and so on. Defaulting on a debt, on the other hand, lowers your credit score.
When you’re in a squeeze for cash, a personal loan can come in handy. However, before such a loan may be approved, you must pass the lender’s numerous tests. You can use the personal loan eligibility checker to get a rough idea of how much money you’ll be able to borrow. Your credit or CIBIL score will be one of the first things your application will have to pass through. But what constitutes a satisfactory CIBIL score? Is there no personal loan available for persons with a poor CIBIL score?
While it may be more difficult to obtain a personal loan without CIBIL score, you may be able to do so with some effort.
Taking out an Instant Loan when your CIBIL score is low
Even though it may be difficult, you can still receive an instant loan with a bad credit rating if you follow the steps below:
Provide proof of income to back up loan repayments
You may have a poor credit rating, but a raise in salary or the addition of another source of income may persuade the lender to consider your loan application. Furthermore, if you can demonstrate that you have a stable job with a consistent revenue stream, your chances of obtaining a loan improve. You should be aware that you may be charged a higher interest rate.
Think about getting a small personal loan.
With a low CIBIL score and a sizable personal loan request, your lender might consider you to be a high-risk candidate. According to the lender, you have a higher likelihood of missing a loan payment. The lender might be more inclined to grant the request if the personal loan is for a smaller amount. In addition, paying back a smaller amount will be considerably simpler. Check your CIBIL Score to know about your eligibility.
Obtain a guarantor or apply for a joint loan.
Having a co-applicant or guarantor with a good credit score might speed up the process of getting a personal loan if your CIBIL score is low. Make sure the KYC procedures are carried out, along with the necessary signatures on the necessary documents, with your co-or applicant’s guarantor’s approval.
It surely helps you get a better deal when a lender discovers a co-applicant or guarantor on your loan application with a respectable CIBIL score.
Correct Credit Report Inaccuracies
With a poor CIBIL score, you may find it difficult to obtain a personal loan. However, there is a chance that your credit report contains mistakes or misreporting.
Request that your lender consider your case if your credit report shows a NA or NH.
A credit period that was inactive in the previous 36 months or the lack of a credit period during that time is indicated by a NA or NH on your credit report. As a result, your CIBIL report won’t contain any information on your credit score.
Tell your potential lender why there has been a period of credit inactivity. It’s likely that the loan will have a higher interest rate applied to it.
Even though following these procedures can help you get an immediate loan despite having bad credit, you’ll still need enough cash to make the repayments on time. If you default on the loan, your CIBIL score will be further decreased.