Can we take loans even we have bad credit score? The answer is yes, we can. Some options are available which can be helpful for anyone to take loan even if he has bad credit score. These options not only help you to get loan but also helps you to enhance your poor credit score. As we know when one takes loan then there will be always an extra pressure on us to clear it within time. But sometime it is observed that people fail to repay it on time and have to suffer with bad credit score. The bad credit score affects adversely your loan taking capacity. The chance of approval gets lowered. But, there are still some options available to take loan if you really need it.
Loan against your FD
If you have fixed deposit in any bank then it will be very helpful in taking loans against it. You can apply for the loan against your FD. This FD will be considered as your asset or loan guarantee of repayment. If you fail to repay it then your FD will be taken by the bank regarding the repayment. In this you may get a loan up to 75-80% of the FD value.
Sometimes it happens that there is a sudden need of money happens. The situation needs money at any cost and your credit score is poor. This option can be quite helpful for you to take loan. You may go to the bank with your gold. They will take gold as a asset of guaranty. This will also allow to taking a loan of about 80% and the interest loan may differ from bank to bank. It will be approximately up to 8-10%.
These are loans which are provided by the private financial firms. This is for those who have a salary account. You are getting salary every month but sometimes, you need money in last week of month. Then this loan can be beneficial to you. It will help to fulfill your requirement but have to pay loan when the salary issued in your account. It is for 5-10 days. The interest rate is very low.
Credit score builder loans
This loan is provided only by the private firm. You can get loan in low amount with average interest and pay it on timely to improve your credit score. The document requirement is very low or minimum. If you have salaried account then it will be very easy for you to take this loan. It could be very beneficial in maintaining of building a good credit score.
Loan against your property or asset
Suppose your credit score is low or even worst and you have to take loan. Then this will be quite beneficial for you. In this you have to submit the paper of your property to the bank and you can get a loan up to 80-85% of the property value. The interest rate is nominal not much high. If you have good asset value then this will be quite beneficial. Sometimes people sell their property but this facility might help you.
Personal loans from the cooperatives society
It is a very simple and effective way to get personal loans. It doesn’t require any credit score or your record in repayment. There are many (Non Banking Financial Company) NBFCs are available to provide this loan at very low documentation. The interest rate is quite low. But always try to pay these loans on time. This facility can be availed again and again.
Well, these are some of the effective ways to get loan if you have bad credit score. One should follow any of the steps which one is in their reach. Some online options are also available but that could give only low amount and quite be risky regarding the repayment terms. When you take loans then try to pay it back on time. This will help you to built good credit and terms with the bank and that will be beneficial for your future need. Hope this was beneficial for you. Your suggestions are welcomed. Please comment your suggestions compliments regarding this.