Getting a financial loan depends on multiple factors and credit score is one of them. The only thing that stands between you and loan approval is your credit score. Keep it high and the chances of approval increases and vice versa. So, people with low credit score have very low chances of getting a CA loan. Yet, if you still need the money, you can try these three things to get a CA loan.
1. Wait and rebuild your credit score: Thanks to your poor credit score, you’re now standing at a point from where the road diverges into two: you can wait and rebuild your credit score before applying for the loan, or apply for the loan instantly and get saddled with a higher interest rate. The better alternative is to take the first road, the latter choice may lead to financial issues in near future. Plus, you’ll have to repay more than what’s required.
2. Explore your options: With a large fraction of money lender available in the market, every prospective borrower can manage to get a CA loan, even with their bad credit score. Due to this cut-throat competition, your CA loan application has good chances of being approved by one or the other lender. All you have to do is explore all the options available in the market that fits the bill in your case. But, make sure you don’t end up choosing an illegitimate money lender in order to secure a CA loan.
Banks, be it any, are less likely to approve your CA loan application due to your bad credit score. You can try your luck with NBFCs. NBFCs have feasible eligibility criteria for CA loan, and you have better chances with NBFCs.
3. Take help from a guarantor: You can take help from people who have a good credit score to get your CA loan approved by making them your loan guarantor. As a guarantor, your friend or family member will have to co-sign the loan agreement, after which the lender will evaluate their credit eligibility and proceed with your application. But, before asking someone to be a guarantor, be 200% sure that you can repay the loan or else your guarantor will be held responsible and will have to repay the entire loan.
Bottom line: It’s all a matter of being eligible for a loan. Look out for financial institutions like NBFCs with a feasible eligibility criterion that is easy for you to qualify.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.