Applied for a personal loan and got rejected! Reason stated: Bad Credit Score!
Sounds familiar? This is quite a common scenario with many people who are looking for a loan in their time of emergencies. Bad credit score can make it a difficult task for you. If you are trying to avail a low interest personal loan from a bank, it is important to have a good credit history.
Let’s understand what it is.
Credit rating companies like CIBIL provide credit score based on your debt and credit history. Factors like repayment track record, number of loans, debt amount and tenure of loan, all these affect your credit score. Usually, you get a bad credit score if you have defaulted on payments or if your loan applications have been rejected by many lenders or you never had any loan or credit history. To get a personal loan from banks, you need a credit score of above 750. Anything less than that, puts you in high risk bracket and leads to rejection of your loan application.
However, it is possible for you to get a personal loan even with bad credit score. What can you do?
If you have a credit card or existing loan, ensure that you are keeping your commitments and making payments on time. This will help you get a better credit score. If you have defaulted and have a bad score already, you can apply for a small loan from NBFC Private Finance and serve it in timely manner to improve your score.
Let’s understand that credit score is not the only factor considered in getting a loan. Other factors like a stable income, employment in an MNC, a co-applicant with a good credit score and strong financial track record are some of the strongest ones that are considered important for personal loan. While banks may give more weightage to credit score, NBFCs are more flexible and look at the overall picture. If you have a credit score of 500, you can present your strongest factor like a recent increase in the salary or stability of your job to get your loan approved. NBFC personal loans providers mostly consider these aspects. However, it is possible that you may get it at higher interest rate than what a person with good credit score may get.
You can consider online lending platform like MYFI, the best option to go for. At MYFI, we connect you to the lenders who will look at not just your credit score but also your social profile, your track, your standing and more. You can provide a reasonable and genuine explanation for your bad score. Unlike banks and NBFCs, the chances of getting a personal loan financed from MYFI would be easier and faster, especially if you have a bad credit score. Don’t let a credit score stop you from fulfilling your goals. Let MYFI help you!