Sudden financial requirement is one of the toughest but unavoidable situations of life. A sudden medical emergency with no access to enough money can lead you to have the most difficult times in life, in such a situation, short-term personal loan comes as a blessing to us.
Advantages of Taking Personal Loans
- Personal loan for short term is very easy to take, as get approved quite faster, and the disbursement process takes much less time compared to any other form of a loan. In an emergency situation, this is the most desirable option that you could have got.
- And the other great thing about this form of loan is that the interest rate is a competitive one. So, when you repay the amount, you would not have to pay a lot for it.
- While availing for a personal loan, you would not need to take any guarantor with you, and you would be able to use the loan for any of your personal requirements.
- There is no fixed amount of the loan you could take, in fact, it all depends on your income, CIBIL score, etc., which the bank would check and then would offer you the maximum amount that they can give you as a loan.
How can you Get Personal Loans with Bad Credit and No Bank Account
CIBIL is a credit information company which gives a 3-digit score to all individuals depending on their ability to repay the loan. If you have a good CIBIL score, then you would be able to get loans from financial institutions or any credit lending company easily. Checking the CIBIL score basically means that whether you are consistent enough to repay your loans on time, the report summarizes all of your credit history.
Now, say your salary has increased recently, and you have a steady job, but your credit history was not good. Hence your CIBIL score is low. In such a case, lenders may agree to give you personal loans, but you have to persuade them that you are capable enough to repay your loan on time. But if you try getting a personal loan in this way, then the rate of interest charged might be much higher than the usual ones.
Secondly, if you are applying for a personal loan with low CIBIL score try to go for a lower amount of personal loan, as it would be easier for you to get. The lender would also have confidence that you would be able to repay the same, and in case you have to opt for a higher amount or don’t have a bank account at all, try to apply for the loan with a co-applicant or guarantor who has a good CIBIL score.
How much Time will it take to Improve the CIBIL score?
If your CIBIL score is extremely poor, then it might take some time to bring it up again. There are some effective methods on how to improve CIBIL score.
One must reduce the usage of credit cards and clean the credit card record. Unpaid credit card debts are one of the biggest reasons for the credit score going down.
One can also opt for a gold loan from a privatized bank or NBFC like Bajaj Finserv.
There are options for purchasing things through EMIs and by making continuously successful payments each time, you can bring up the score.
Try to get a secured credit card and start making purchases on EMIs which will be reflected on the credit report. After a few years, make a substantial purchase through EMIs which will show that the lender has found you reliable enough for the transaction and that will bring up the score as well.
Once you build up a good credit history with timely repayments of debt, you can expect to achieve a higher credit score. Also, make sure that you get a copy of your credit report and check for any anomalies or discrepancies which are mistakenly reported there. Sometimes factors like these also hinder the credit score.