The credit score determines whether you are eligible to get a loan or not from a lender. The lenders would usually count on your credit score to assess your ability to repay the loans rendered by them. The credit score is a summary of your credit records, the amount of credit you took, your method of repaying the credit, and many more factors. On the other hand, loans given to people with low credit scores are known as bad credit loans.
However, it isn’t impossible to ensure bad credit loans guaranteed approval if you know how to do it.
Prove That You Have A Stable And Good Income For EMI Payments
A lender might approve your loan, despite a poor credit score, if you had experienced a recent salary hike or if you earn from a side business. You need to ensure good communication with your lender and prove that you have a stable source of income to get approved for a bad credit loans guaranteed approval – slick cash loan despite having a bad CIBIL score. However, verifying your eligibility in this way might cost you a higher interest rate.
Seek For A Lower Loan Amount
A lender would find it risky if you seek a higher loan amount with a bad CIBIL score. The respective lender might think that you might have a default on repaying loans when you ask them for a higher loan amount. However, on asking for a lower loan amount, the lender would feel more comfortable approving the loan for you. This is because they are sure that you would easily be able to repay at lower loan rates and much more quickly compared to higher loan amounts.
Either Get A Guarantor Or Apply For The Loan Through Co-Applicant
If you have a poor CIBIL score, you can involve a guarantor or a co-applicant when applying for a loan. But if you choose this route, then inform the other applicant in advance since they would have to sign on various papers and be done with the KYC formalities as well. The chances of your lender approving your loan are higher when you apply either with a co-applicant o with a guarantor who has a better credit score than you or has a steadier income.
Ensure Your Credit Report Is Error-Free
Your CIBIL report might contain errors when the newest information hasn’t been updated as per your given record. Such mistakes can have a dire consequence on your credit score, with zero faults from your side. Henceforth, you must always go through your CIBIL report and see if it needs correction. This wouldn’t only increase your CIBIL score and make you an eligible candidate for a loan.
These measures would help you get your bad credit loan approved. However, you must ensure you have enough funds to repay the loans you are signing for. Your credit score might go down further if you are again unable to pay the loan. Count on the loan EMI calculator to determine the EMI from beforehand and accordingly plan your repayment.