While facing a cash crunch and at the time of sudden expenses one might have some additional financial support that can fulfil their household needs, and that is an urgent loan which helps you get instant financial support for the accomplishment of all those needs you are looking for. However, it is easy for those having good credit scores and income. It doesn’t matter whether the customer is salaried or self-employed, it only depends on the salary and credit score. So, in the case of a lower credit score, one might have difficulties in getting a loan, but after some effort, you can get a personal loan easily.Â
What is a credit score?
A credit score is a financial history which is decided after verifying all your transactions, especially, if you have borrowed and repaid fairly, your credit score becomes higher and categorized as fair, good, and excellent. It starts from 300 and goes up to 900. The credit score is categorized in this way and these are 300 to 600 is treated as poor, above 600 and up to 700 is treated as average, 700 to 750 is good, and above 750 comes under very good or excellent credit score.
What Is a Bad Credit Score?
A credit score is a 3-digit number ranging between 300 to 900 that reflects your creditworthiness. In India, a credit score below 600 is generally considered bad or poor.
How Does the Credit Score Work?
| Score Range | Credit Status | Loan Eligibility |
|---|---|---|
| 750 – 900 | Excellent | High chances of approval, low interest |
| 700 – 749 | Good | Easy approval, competitive rates |
| 600 – 699 | Fair | Limited approval with moderate rates |
| Below 600 | Poor/Bad | Difficult, but not impossible |
Your credit score is influenced by:
Repayment history
Credit utilization ratio
Age of credit history
Types of credit
Number of loan inquiries
Consequences of low credit score
A low CIBIL score always impacts your financial planning, especially when applying for a personal loan or other loans, you can face rejection or others like higher interest on loan, higher premium for insurance etc. It will not only enhance the repayment amount but also create difficulties in the approval. Therefore, it is essential and beneficial to enhance the credit score with different steps.
How to get an urgent loan with a bad credit score
You can follow different ways that can help you get the urgent loan even after a lower credit score and these are
Apply with the lower amount
You can apply for a lower amount, especially when you have a bad credit score because in that case, the lender will help you borrow the small amount. However, it will be based on their decisions finally.Â
Search for the lender facilitating the loan
To get an urgent loan, search such lenders who facilitate the loan even after a low credit score. In many cases, especially when your income is good, lenders consider the lower score also.
Apply for a short-term loan
You can also try the short-term Personal loan, where the personal loan is approved based on salary and it has chances to increase your credit score also.
Ways to enhance the credit score
There are various ways to enhance the credit score and these are
Repay on time
You must be conscious while paying your loan amount on time, it will help you get the loan easily for the next time.
Use the credit card wisely
The usage of credit cards must be done wisely where you must not exceed the limit and also use the credit card’s lower limit that can be paid easily.
Borrow the payday loan
You can also borrow a payday loan which is available shortly and once you have borrowed and paid on time, you can increase your credit score.
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Tips to Improve Loan Approval Chances
Apply for smaller amounts
Opt for secured loans like gold loans
Show consistent income proof
Reduce existing debts, if possible
Avoid applying with multiple lenders at once
Advantages & Disadvantages of Urgent Loans with Bad Credit
| Advantages | Disadvantages |
|---|---|
| Quick approval and disbursal | Higher interest rates |
| Minimal documentation | Lower loan amount eligibility |
| Available through Aadhaar eKYC | May require collateral in some cases |
| Helpful in emergencies | Can affect your score more if not repaid timely |
Conclusion
Getting an urgent loan with a bad credit score indeed might be tough and you can choose the lenders which provide personal loans without any difficulties. Some other strategies can also help you get the loan easily. Before that, it is also essential to increase the credit score which can be done easily and instantly. Finally, after getting the loan, you must repay the loan so that you can boost your credit score easily for better financial support in future.
Disclaimers
The information provided in this blog is for informational purposes only and should not be considered financial or legal advice. Loan terms, interest rates, and eligibility criteria may vary based on the lender’s policies. Readers are advised to verify details with financial institutions before making any decisions. We do not guarantee loan approval or endorse any specific lender.
