You’ll need a good credit score (commonly known as CIBIL score on India) to be approved for online loans, credit cards as well as other forms of credit at any point in life. This three-digit score ranges between 300 and 900, considering the average being around 750. Anything below the, and most banks or non-banking financial companies is going to consider you a high-risk borrower.
Check your score on line to get a better idea of your creditworthiness, especially if you could be planning to apply for a personal loan or credit card. Low credit scores can be caused by a number of factors, and if you find the fact that yours is less than the average, bad credit loans could help you reduce your debt and improve your credit history.
Do I Need a Bad Credit standing Loan? How Can It Help?
Here are some examples of occasions where you may need a bad credit loan:
You have a variety of outstanding loans, large credit card balances and other overdue debt, or very high-interest rates because of credit rating scores.
You find it difficult to make EMI or visa card payments on time every month, leading to late fees and even charges being added to your existing debt.
You possess no credit history at all, having never used any variety of loan or other financial product in the past (yes, this is quite common in India! ).
Unsecured personal loan or revolving lines of credit like MoneyTap can help you in these situations. You can use these products as bad credit loans, to your debt as well as improve your credit score over time. Credit lines are actually far more flexible than traditional options for debt consolidation, and the most useful have lower interest rates as well.
Here’s how a very own line of credit can work in your advantage if you have bad credit:
Loan product approval is based on various factors, not just your credit history or simply score.
The application process is quick and easy, with no a guarantee backing required.
You can build a credit history by using the line of credit and repaying it on time.
Consolidate high-interest credit debt with a credit line that has better interest rates.
Use multipurpose credit to clear overdue loan EMIs, credit card bills, utility bills, etc .
After approval, you have guaranteed access to unexpected funds in times of need.
Credit line recharges with just about every single payment made, so you have a lifetime credit possibility.