Lajpat Nagar is named in honor of Lala Lajpat Rai and today is known as Lajpat Nagar Central Market. It is a residential and commercial hub located in the South-East part of Delhi. The main attraction of this place is the Central Market which is a popular destination for shopping, garments, and textiles. This place has become a residential neighborhood for many tourists and refugees from various countries in recent years.
Lajpat Nagar is filled with outstanding medical and health care facilities, education, travel, and transportation, making it a convenient place to live. However, with the constant rise in prices and lifestyle changes, the financial burden to handle living expenses has also increased. Moreover, if you have any emergency where you need immediate funds, it will become challenging to handle such situations. Hence, the correct option is to take a personal loan through Buddy Loan to meet such sudden expenses. It is one of the largest loan aggregators that help get personal loans at affordable interest rates.
You can apply for a personal loan for various reasons such as sudden medical treatment, developing your business, planning for a dream vacation, handling expenses related to a wedding, etc. Since it is an unsecured loan, you need not submit any collateral as security to get this loan.
And when you apply for a personal loan, lenders usually check your credit score to determine your credibility. Having a score above 750 is considered good and indicates that you can repay your loan without defaulting. However, you can still get instant personal loan even if you have a bad credit score. Wondering how? Read this article further to learn what a credit score is and how to get a Personal Loan in Lajpat Nagar, Delhi, even if you have a poor score.
What is a Credit Score?
A typical credit score ranges from 300 to 900, indicating the loan applicant’s creditworthiness. Generally, if you have a credit score above 750, you are a low-risk borrower as it shows that you can repay your loan amount on time. A good score helps you get a loan at lower interest rates.
How To Get a Personal Loan When You Have a Bad Credit Score?
It can be challenging to get your loan approved when you have a poor credit history. So, to get a loan with a bad credit rating, here are a few alternative ways:
Show proof of your alternate source of income to repay your loans: If you have an additional source of income like house rent, side business, etc., submit that as evidence to show that you can repay your loans. In that way, lenders will understand that you have a consistent flow of income, which will increase the chances of getting your loan approved.
Avail for a low loan amount: Since you have a bad credit rating, the lenders may take you as a high-risk borrower if you apply for a high loan amount. Hence, you can apply for a low amount personal loan as it reduces the risk of defaulting and makes the repayment more manageable.
Get a Guarantor or a joint loan: Get yourself a co-applicant or guarantor who has good credit history when you apply for a loan. In that way, the lender will trust that you will repay your loans on time.
Clear errors in your credit report: You have to check your credit report at least once a year to ensure no mistakes that may affect your credit score. Doing so will also help you to improve your credit score.
How to take conscious steps to improve your bad credit score?
Check Your Credit Report
When you regularly review and monitor your credit report, you will get insights into your credit history. You can get your credit report from major credit bureaus such as Experian, Equifax, and TransUnion. Therefore, review the report at least once a year to find and rectify any potential errors that may harm your score.
Make Timely Repayments
Payment history accounts for 30% of the FICO score model. Hence, it has a significant impact on your credit score. Therefore, make timely repayments to improve your score significantly. To avoid missing out on payments, you can also set reminders to make payments on time.
Maintain your Credit Utilization to less than 30%
Credit Utilization Ratio (CUR) shows how much credit you have used to your credit limit. You must maintain your credit utilization ratio to less than 30% by paying your credit dues fully. If you face difficulties, you can request your lender to increase your credit limit to keep your credit utilization healthy.
Limit your Hard Inquiries
Whenever you apply for loans from multiple lenders, each lender will check your credit score to determine your creditworthiness. As a result, it will generate a hard inquiry, thereby negatively harming your score. Therefore, apply for a loan only once at a time to avoid unnecessary hard inquiries recorded on your credit report.
Keep Your Old Accounts Open
Do not close your old credit account even if you no longer use it. The reason is that maintaining your old account will increase the length of your credit history. Therefore, the longer your credit history, the more favorable you appear to the lenders as it shows consistent repayment history.
A personal loan is a go-to option when you need money. You can always choose to get personal loans at the best interest rates using Buddy Loan. It is one of the largest loan aggregators that help get loans from top lenders. Before applying for a loan, you can check if you have a good credit score using Buddy Score. If you have a poor credit score, you need not worry; you can still get loans by following the tips mentioned above.