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Personal Loan: There is no trust in life, no one can tell when and what trouble will arise. Personal loan proves helpful in case of sudden need of money during emergency. However, many times there are problems in getting loan approved due to poor credit score. Due to bad credit score, the bank sees you as a risky customer and hesitates in giving loan. Here we are going to tell you about the ways by which you can apply for a personal loan despite having a bad credit score.
What is credit score?
Credit score is a 3-digit number between 300-900, which shows how responsibly you have paid your previous loans. Generally, a score less than 650 is considered bad, but there is no need to panic because a low score does not mean that you will not get a loan, rather it limits your options for getting a loan. In such a situation, even if the credit score is bad, one can still apply for an emergency loan.
How to improve your chances of getting loan approved
- First of all make your income profile strong. Show the bank that you have a stable income source. This means that despite having a bad credit score, you are still capable of repaying the loan on time. This increases the chances of getting the loan approved.
- Choose the option of secured loan. With this, the chances of getting the loan approved increases manifold. Whenever something is deposited with the bank as a guarantee against the loan, this gives the bank so much confidence that it will return the loan on time without any default.
- Apply for low amount loan. This is less risky for the lender and also increases your chances of getting the loan approved.
- To avail a personal loan in case of emergency with a bad credit score, choose someone with a good credit score as a guarantor. This improves the chances of getting a loan.
- The most important thing is that if you have dues or have forgotten to pay the bill, pay it before applying for the loan. This can increase your credit score.
Disclaimer: (The information provided here is being provided for information only. It is important to note here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
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