Sometimes it’s almost impossible to foresee a financial crisis until it strikes when you don’t have money in your pocket or any friends and family that can lend you the funds you need. Even worse, you can’t qualify for loans from specific lending platforms due to poor CIBIL scores.
If you’re in this situation, don’t panic. There are various ways or things you can do to secure bad credit loans, even with a poor CIBIL score. So without further ado, let’s jump straight into it.
How to Get Bad Credit Loans For Low CIBIL Score
1. Choose Collateral-based Loans
Collateral loans are one of the best ways to compensate for your poor CIBIL score, as they don’t consider it when offering the loan. It may require you to give up your valuable jewellery, shares, or even profit until you repay the loan.
Once your assets have been made as part of the loan deal, you’ll be in a position to select the best suitable lender you want for bad credit loans. You should pick the lender regarding the interest rates they offer, the period, and terms.
However, default payments in collateral loans are dangerous as the lender will seize your collateral asset to compensate for the amount you borrowed as well as the interest rates charged. Therefore, you should abide by their policies and pay-up as the contract provides.
2. Identify a Guarantor
Having a credible guarantor is by far one of the best techniques for securing a loan, especially if your CIBIL score is low. Your guarantor might be a colleague, family member, or your best friend. Of course, your guarantor must have a high CIBIL score for any lender to accept you.
3. Look For a Co-Applicant
Finding a co-applicant with a good income source is another terrific method to get a bad credit loan despite a poor CIBIL score. However, the co-applicant will have to come from within your inner circle, preferably a family member who will be alerted to your intention to secure a loan.
The co-applicant and the guarantor will pledge to take the burden of paying the loan if, for whatever reason, you fail to repay the outstanding balance. However, the co-applicant and the guarantor will still have to meet specific criteria before the loan discussions can be held.
4. Demonstrate Your Creditworthiness
A poor CIBIL score doesn’t just come from late or default payments. On the contrary, it might be due to not using credit cards regularly, or maybe you haven’t sought out a loan before. However, if you can prove to the lenders that you have a steady and reliable source of income, then you will qualify yourself for a loan.
The worst lenders may need your bank statements and payslip, and after they conduct a proper review, you’ll go directly into the loan terms and conditions.
5. Be Conservative While Borrowing
If you’re sure you have a poor CIBIL score, then requesting a considerable sum of money from lenders will be almost financial suicide. Let’s face it; no lender will be willing to give anyone with a poor credit score vast amounts if they don’t meet the essential criteria. So asking for a large sum automatically disqualifies you.
However, all this can change if you go for a reasonable amount of money. Requesting realistic loans will give the lender time to gauge if they can offer the loan. However, if they issue you a loan despite your bad CIBIL score, expect to pay a high-interest rate.
6. Go For Online Lenders
Many individuals are moving away from traditional ways of securing loans as they have extreme requirements to meet before they listen to your loan plea. Fortunately, online platforms like Gday Loans can work with credible lenders who offer loans regardless of your CIBIL score.
You’ll only have to fill in an application form which they’ll review within minutes and give you feedback; then, the next step will be to connect you with your desired lender or the lender that fits your needs. However, the interest rates might be slightly higher due to the bad CIBIL score but rest assured you’ll secure the loan.
7. Establish Lending Criteria In Advance
Even though most people ignore the eligibility criteria, it still plays a pivotal role in securing loans with a poor CIBIL score. That being said, you should conduct proper online research on which platforms you match with and if they can offer you a loan regardless of your bad CIBIL score.
Of course, most lenders will want to know your CIBIL history and score. The reason behind this is that they’ll want to evaluate if you are credible or if you have that desperate trait that lenders dislike in borrowers.
However, if you manage to find the most suitable lender that can offer you a loan without diving deep into your CIBIL score, you’ll have won. But until then, you have to do due diligence and keep checking various lending platforms and the criteria they require their borrowers to meet.
Even though securing a loan with a poor CIBIL is almost impossible, there are platforms such as G’day Loans that are willing to connect you with their credible lenders so that you secure bad credit loans.
So if you need a loan, even with a bad CIBIL score, try Gday Loans so that you get the financial assistance you need at reasonable interest rates and repayment periods.