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Low credit score loans that are approved are deemed under the high-risk borrower category. Credit score monitoring is important as it bestows the lenders the power to decide whether to offer a loan or a credit to the applicant.
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Are You Having A Poor Credit Score? Here's How You Can Still Get A Loan A credit score is one of the prerequisites that are essential for getting a loan sanctioned. Creditworthiness is calculated by CIBIL or the Credit Information Bureau India Limited through a designated score. This score gradation states anything over and above 800 is an excellent score & between 750 to 800 is good. The chances of accruing loans are doubled with a good credit score. Scores in the range of 700 -750 are measured as fair, while between 650 to 700 is categorized under poor. An applicant with a poor scorecard reduces the chances of getting a loan. Low credit score loans that are approved are deemed under the high-risk borrower category. Credit score monitoring is important as it bestows the lenders the power to decide whether to offer a loan or a credit to the applicant. Steps to avail of a loan with a poor credit score The process is cumbersome, but one can still secure a loan with a poor credit score following the below steps. Secure a Joint Loan or apply through a Guarantor The chances of approval increase if the application for getting a loan is availed through a family member or by getting a guarantor.
A co-applicant with a good credit score rating. One can guarantee a better deal if a loan is sanctioned with a guarantor or spouse or supposedly a family member. Opting for a Low Personal Amount Loan A low credit rating might run the risk for an applicant to be categorized under a high-risk borrower. It reduces the chances of getting a loan with a high valuation. However, a lower amount of loan might be being granted due to the repayment process being easier. Get a Secured Loan The applicant with a poor credit rating can even opt for a secured loan. A loan that is not based on credit worthiness. It just necessitates one to present collaterals. It might be in terms of fixed deposits to jewellery or land etc., as security. Resolving Errors in Credit Report The credit report is often marred due to errors related to misreporting or the possibility of the same not being updated. The latest information is often not registered, making it all the more difficult to secure a loan. It ascertains why credit scores must be checked regularly to find lapses & resolving them. Income Evidence Projecting an additional income or possibly a hike in salary is favoured in most cases for loan applications. The steady the income, the more likely a loan is to be sanctioned. One can avail of a loan with a low credit score; however, it is evident that the credit score needs to be improvised and maintained. Failure in the repayment process leads to the credit score to further plummet below the standard valuation. Poor credit loans must be availed only in cases of utmost urgency.
