The credit score or CIBIL score is a person’s rating of creditworthiness. This rating ranges from 300-900, where 750-900 is a good credit rating. A rating below that is problematic, as it indicates credit-hungry or untrustworthy nature.
Every institution checks the credit score or CIBIL score of the individual before lending them money or a loan. Many phone companies also evaluate the score before offering a post-paid connection.
When you have a low credit score, below 750, then it may be hard to get an instant loan, but not impossible. You just need to follow a few tips to improve your credit mistakes and offer the right documents to get an instant loan.
In this article, we have discussed the method to take an instant loan for a low CIBIL score.
How Can You Get an Instant Loan Even With a Low Credit Score?
If you are worried that you can’t get an instant loan for a low CIBIL score, then that’s not true. Here are some tips that can help you get an instant loan.
- Lesser Amount
With a low CIBIL score, it may be intelligent to get an instant loanof a lesser amount. Asking for a higher amount loan with a poor credit history means a high risk to the lender. If you expect a lesser amount loan with your CIBIL score, you have more chances of getting it.
2. Income Proof
When a borrower has a stable job, his application for aninstant loan may be considered. You need to offer proof of increase in salary or an additional payment source to prove that you have the capability to repay the full amount back.
If there’s an option, then you can avail of aninstant loan with a co-applicant. If your co-applicant has a good CIBIL score and a steady income, then you have a higher chance of getting an instant loan for a low CIBIL score.
4. Apply Online
One of the easiest methods is to apply online with a neo-bank. You may get a smallinstant loan without a great credit history. However, as the applicant, it is necessary to submit KYC documents, income proof, and bank statements. The entire process is online, so that’s feasible for the applicant.
5. Reduce Credit Score Faults
Try to correct some of your credit history faults.
- Start paying bills on time – any bill.
- Take a credit card and use it.
Some Reasons Why Your Credit Score is Low
To understand why your CIBIL score is low or why it is decreasing, evaluate and correct these credit mistakes.
- You are delaying your credit bill payment. This can be a credit card bill or a loan instalment. Frequently doing this negatively impacts your repayment history, which indicates that you are not credit-worthy.
- Exhausting your credit limit frequently and failing to pay back the credit on time.
- Applying for too many credit lines. For instance, applying for 10 credit cards at once. This portrays you as a credit-hungry person, which reduces your CIBIL score.
- No credit lines or no credit history. When you don’t have credit cards, loans, or other credit lines, your credit score may not get generated.
Applying for an instant personal loan for a low CIBIL score is easy. You just need appropriate documents and funds to repay the loan. The proof of your income or repayment guarantee can help you. Check the above methods and apply for an instant loan now! Don’t forget to read tips for improving your CIBIL score; it will help you in the long term.