Banks and other financial institutions are very particular when it comes to credit scores. If you do not meet their standard credit score, you will not be eligible for a personal loan. This proves to be a problematic situation for people who have no or bad credit score, but is in urgent need of cash.
Eligible Credit Score for Personal Loans
The credit score of every bank or lender varies. Many people often wonder why credit score plays a crucial role while applying for loans. Credit scores are tools that determine how much loan can be approved to an individual. The greater the score, higher the loan amount will get approved.
If you are not sure what your credit score is, you can get that information from the credit agencies. Experian, Equifax, and Callcredit are the main agencies from your can get you credit reports and scores.
If you are in an emergency situation that requires fast cash in the UK, you can count on companies such as BingoLoans to help you out. If you have a bad credit record, you can apply for short term loans. They have an easy and user-friendly application system that will have all the information you need to get your loan. They even have an online calculator that can give you an estimate on how much loan amount needs to be repaid on a monthly basis.
Borrowing Credit Scores
If you have friends or loved ones, you can always ask to borrow their credit scores. This means that in case you default on the loan amount, your friends or loved ones can repay the same. These people become you co applicant and if they have a good credit score history, you can be eligible to apply for a personal loan.
Some financial institutions might not entertain borrowed credit scores. In such situations, you can always check to see if they accept your spouse income. It is always better to keep your options open when it comes to applying for a personal loan.
You can even apply for personal loans, by using collaterals. These include:
- Savings secured loans
- Car secured loans
- Home equity loans
- 401K or IRA loans with a retirement account
If you are a loyal customer with the bank or financial institution, you can always ask them to reconsider. Ensure that you have a genuine reason on why you need the personal loan. You might need to convince them that you will repay the loan amount within the stipulated time.
Options to Avail Personal Loans
The below options might prove to be useful when it comes to getting a personal loan with a bad credit score:
- Try asking your friends or relatives for a loan
- Work on improving your credit score
- Try to come up with ways to increase your credit score
If you have other loans that need to be repaid, which in turn might be hurting your score, ensure that you make the necessary payments on time. Ensure that you weigh your options carefully or wait until your credit score has improved.