Low Credit Scores? No Problem! You Can Still Get a Personal Loan!

personal loan for low credit scores

Your credit score is one factor that determines how easily you can get credit cards or loans. This 3-digit number indicates your repayment ability, credit health, borrowing habits, etc., and is a consolidated version of your credit history.

Suggested Read – A Comprehensive Guide to Credit Scores

Financial experts everywhere insist on individuals maintaining a high credit score. Scores over 700 open the door to instant loans, lower interest rates, and flexible repayment terms. You can get any loan you want at favorable conditions from anywhere. 

However, maintaining a good credit score may not always be possible. But should this prevent you from getting a loan in emergencies?

Can I Get a Loan with a Low Credit Score?

Yes, you can. But there are some terms and conditions attached. 

Firstly, not all lenders offer loans to those whose credit scores are below 700 (spoiler alert, we do but more on this later). Secondly, even if they do offer personal loans to low credit score applicants, the conditions will not be favorable.

The main criteria that decides a borrower’s eligibility is his/her repayment ability and the associated risk for lenders. If the lender is convinced that the borrower can repay a loan on time, then the interest rates will be lower and the loan amount will be higher. If the lender perceives the borrower to be at risk regarding repayment, then conditions will not be in the borrower’s favor.

Therefore if your credit score is low, the lender will not be convinced of your creditworthiness and repayment ability. This is why unfavorable conditions are imposed so as to reduce the risk for the lender.

While you can get a loan even with a low credit score, you will not be able to get a high loan amount or low interest rates.

What Can I Do To Get a Loan With Favorable Terms?

The first step to take is to work on improving your credit score and there are many ways to do this.

how to get loan with low credit score

Some of the popular steps to take include-

  • Repay your loans on time
  • Have a healthy mix of secured and unsecured loans
  • Do not use more than 30% of your credit utilization ratio
  • Pay your credit card bills in full 
  • Maintain a favorable debt-to-income ratio

Suggested Read : How to Improve Your Credit Score

Once your credit score has improved, you’ll automatically start getting better loan offers. The amount being offered will be higher, the interest rates will be lower, and you will have more room to negotiate as well.

Personal Loans for Low Credit Scores by moneyview

Access to financial help is everyone’s basic right. Financial emergencies come unannounced and in such cases low credit scores can prevent you from getting a loan. But with moneyview, you can relax because we provide personal loans to low credit score applicants.

get personal loan for low credit score from moneyview

We use a unique algorithm to determine our applicant’s eligibility where we focus on multiple factors. While this includes your credit score, there are other criteria that help us decide your eligibility. This is why you can get a personal loan from us even if your scores are on the lower side.

Visit our website or download our app to get an instant personal loan!