Finance 5 Tips to get an Unsecured Personal Loan Despite Bad Credit Posted on September 27, 2018 7 min read 0 951 An unsecured Personal Loan is a loan that you can avail during emergencies. A Personal Loan is quick to avail with quick disbursement but is given to people only with a good CIBIL score. Having a consistent and higher credit score is the first parameter that lenders see while awarding anyone an unsecured Personal Loan. Thus, anyone with a credit score of around 750+ or more is considered a safe prospect while approving a Personal Loan application. And people with lower CIBIL scores are rejected as lenders are not sure about their repayment capacity as the low credit score is an indication that they can’t repay on time. Some of the reasons for bad credit score The major reasons for people with a lower CIBIL score are: Multiple loans on head Higher utilization of available credit limits Untimely payment of loan EMIs Missed credit card outstanding No credit history at all Too many loan enquiries at the same time Too many rejected loan applications Paying lower than the exact due amount on loans and credit cards Thus, if you have a bad credit score and still want to avail an unsecured Personal Loan, here are some tips. These will help you get approval for an unsecured Personal Loan despite a bad CIBIL score. How to get an unsecured Personal Loan with a bad credit? The possibility of availing an unsecured Personal Loan goes down with a bad credit but still, there are ways that you can follow to avail the loan. Let’s discuss: Opt for a collateral-based loan If you are not getting an unsecured Personal Loan due to a bad credit, you can think of availing the loan that accepts collaterals. Collaterals such as land, gold, fixed deposits, equities can be used to get a secured loan even with a lower CIBIL score. Check if your lender and your employer are linked up READ 3 Ways to Survive a Tax AuditIf you work for a top company, there is a higher chance that your employer and the lender are associated as a part of the corporate culture. As a mark of respect towards such association, lenders come up with special features on loan. In turn, it can help you get a loan even with a lower credit score. Apply for a joint loan along with your spouse/family member Check if your spouse or any other member in the family has a higher CIBIL score. In case if anyone in the family has a strong CIBIL score, there is a higher probability to get quick the approval for the unsecured Personal Loan as you can apply jointly with him/her. Go and get a guarantor Another method to get the unsecured Personal Loan approval is by getting a guarantor such as family members or friends/relative with a robust CIBIL score. The guarantor’s higher CIBIL score may help you in getting the unsecured Personal Loan approval. Apply to an NBFC Compared to banks, non-banking finance companies (NBFCs) are more willing to award unsecured Personal Loans and have easy Personal Loan eligibility criteria to help you out. Thus, apply to an NBFC and try to seek an unsecured Personal Loan. Follow the discussed tips, assess your conditions and then apply for an unsecured Personal Loan without issues.