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Tricks to get your personal loan approved even with low CIBIL score

Tricks to get your personal loan approved even with low CIBIL score


With low CIBIL score, falls your credit worthiness. Low score makes it difficult to draw a new loan or raise funds for your upcoming plans. Whether you want cash for education, business, buying a new car, property, jewelry or vacation, with low score you would find it difficult to get your loan application approved from the bank.


But can you just let that happen because of low score? Sometimes you just can’t ignore the immediate need for cash and want to raise funds despite the bad score as you do not even have much time to improve the credit history.


Whether you are looking for personal loan for defaulters or other credit options with low score, it is viable to draw a loan when your credit report has a red flag.


Here are some tricks to get your personal loan approved even with low CIBIL score. Although with a tag of default on your CIR you may find it a bit difficult to get credit some times.

First things first, you should check your credit report for errors. If you have always been regular in paying out your loans and bills on time, you should certainly check your credit report for all types of errors. Sometimes your score slips due to mistakes and the same can be reverted after the correction is made. All you need to do is raise a dispute with CIBIL and the correction would be made within 30 days. So you can easily get your loan as per your credit worthiness after the correction.


When you have low score, your credit score is the biggest hurdle in getting the loans approved. So, you need to look out for options wherein your score would not be accessed or the score is not the only major criteria to get the loan approved. For instance you can consider applying to smaller banks, cooperative societies or financial institutions instead of popular banks.


These institutions are interested in lending without or with little credit check but usually charge a higher rate of interest. But for immediate cash requirement applying a personal loan from these banks or institutions is a good option.


Next you can consider applying for payday loans, particularly for short term cash requirement. Payday loans are basically high risk personal loans which are again available at a very high interest rates. All you need to get a payday loan is a job or a constant source of income and a bank account. Even those with new job can get this type of loan approved.


All said and done, everyone would not endorse paying out fortunes on interest rate. So if you subscribe to this ideology, you should consider applying for secured personal loan or collateral loan. It is a good option as you get immediate release of cash and interest rate is also favorable. You can get collateral loan against assets like gold, property, shares, fixed deposits or debit cards. The best part about getting a secured personal loan is, it helps you improve your credit history as you pay back the loan.


Another good option to save on interest is to apply for loan with your spouse, relative or friend who has a good credit score. You can either co apply with a person with good history or make them your guarantor. As bank’s risk is shared by a person with high score, your application gets a much desired mileage and becomes eligible for loan.

All in all to get a personal with low CIBIL score, you would need to do much of research and hunt down the available deals. In the meantime you should do following to boost up the score. As improved score would itself make your loan application attractive.


How to improve cibil score?


1.       Pay back all your dues on time. Despite a cash crunch you need to ensure that you do not miss any payment. Your repayment history makes up for 35% of your score.


2.       Maintain a low credit utilisation ratio every month. Do not use the whole credit limit as it amounts 30% to your score.


3.       Have a right mix of secured and unsecured loans.


4.       Try to maintain a neat and constant history of credit utilisation.


5.       If you have too many loans or credit cards it would be better to club smaller loans into one consolidated loan and get rid of newer cards at the same time. But ensure the timely payments every time.


When you follow these tips you would soon find your score moving upwards.