A Personal Loan

Have A Bad Credit Score? Learn How You Can Still Get A Personal Loan


When you apply for an instant personal loanthe first thing your lender would check is your credit score. Your credit score is a three digit number assigned by a credit bureau to reflect your creditworthiness. It is calculated based on your past borrowing behavior, your repayment history, and your discipline towards financing. A good credit score assures the lender that you are very responsible when it comes to repayment and that they can be rest assured about their money. Whereas, a poor credit score indicates missed EMI payments, high usage of credit card and irresponsible borrowing behaviour. This indicates a high risk for the lenderand they might either reject your loan application or offer you a loan at a very high interest rate.

However, you can still get a loan through an instant loan app, even though your credit score is not high. The only thing you need to make sure is to prove your repayment capability to the lender.

Read on to discover the ways to get an instant personal loan even if you have a low credit score.

How to Get An Instant Personal Loan with A Low Credit Score?

An instant personal loan is the best option for immediate financial assistance. Instant loan apps are a great way to get access to small-ticket funds quickly. All you have to do is download the app, and set up an account, submit the necessary details and documents, and once the verification is done, the amount gets credited within 24 to 48 hours.

But to get your loan disbursed without any glitch you have to maintain a good credit score. However, in case your credit score is suffering for poor past decisions, you can still manage to get an instant personl loan using some smart financing tips.

Tips  to Get An Instant Personal Loan with A Low Credit Score

Despite the challenges, you can still receive a personal loan with bad credit by following the tips below:

1. Bring on a Co-Applicant

Adding a co-applicant who has a high credit score and a stable source of income can help you in securing an instant personal loan even if you have a poor/low credit score. Make sure the KYC requirements are satisfied, and get the requisite signatures on the relevant documents.

You can include your spouse or parents, or earning children on your loan application. Having a co-application dilutes the risk associated with your loan account for the lender and they would be more open to offer you a loan at better terms. However, it is important to note here that missing out on the EMI payments or defaulting on your loan repayment would negatively impact the credit score of both the applicants.

2. Provide Proof of All your Income Sources

Even if you have a poor/low credit score, a raise in salary or a new source of income will help the lender view your loan application favourably. So, while submitting your loan application make sure to mention all your income sources and substantiate that with proof.

Also, if you have any on going loan or debt, use the extra money to close your existing loan account. This will help you improve your credit score. In case, you have already closed your loan account but the same is not reflected in your credit profile then get in touch with the credit bureau and submit the NOC document.

3. Opt for A Lower Personal Loan Amount

A poor credit score makes you a risky borrower, and the lender might be scared to offer you a huge sum in loan amount. You can opt for a lower amount and the assure the lender of your repayment capability by choosing a longer loan tenure which will keep your EMI down.

You can also work towards improving your credit score and apply for a loan transfer or a top up loan after a year. This will help you handle your financial needs while also improving your credit score.

4. Resolve Any Errors or Mistakes in Your Credit Score

A poor credit score is usually a reflection of your poor credit behaviour. But at times, your score might be impacted by a discrepancy in the details.Thus, it is important to keep a check on your credit score from to time and report the credit bureau if you spot any discrepancy.

The most common discrepancies seen in the credit report can be in your personal details, income details or in your loan details. Make sure to report any discrepancy to the credit bureau through an email.

5. Offer a collateral

Personal loans are unsecured loans and that’s why the lender depends on your credit score to determine your creditworthiness. However, if you have a poor credit score you can stillopt for a loan against your savings or other investments, or any other asset.

A personal loan against your FD or mutual funds is easy to avail. You can also consider gold loan or a loan against property. This will not only make your borrowing process easy, but the lender might also offer you the loan at a reduced interest rate, because of the security.


It may need an extra bit of effort, but getting a personal loan with a low credit score is possible. The criteria for eligibility differs from lender to lender. While some lender may have a rigid requirement for high credit score, an instant loan app might offer you some relaxation in terms of your credit score.

You can experiment with various strategies, such as negotiating conditions with your present lender, taking out a loan against a deposit, borrowing against gold, etc. Make sure the loan you obtain will be acceptable with the balance of your money. Make sure you need the money, and if you’ve received a loan, be very careful to pay it back on time.

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