Just like your PAN and Aadhaar, your credit score has also assumed great importance in the world of credit over the past few years. A credit score is a 3-digit score in the range of 300-900 and is assigned by various credit bureaus based on your previous credit behavior.
A good credit score is indicated by higher numbers on the range of credit score and is an absolute necessity if you are looking for loans from traditional sources. Individuals may end up with a bad credit score due to a number of reasons and moving from a bad credit score to a good credit score takes some time.
However, the need for credit could come up at any time. Having a bad credit score could greatly impact the chances of you availing credit in the normal way. But, it might be great to know that there are various options available even for those individuals who have a bad credit score and these can be called bad credit loans.
Bad credit loans can come in two forms:
One could end up with a bad credit score due to a lot of reasons which can vary from one person to another. However, the most common reasons due to which individuals might land up with bad credit are:
One of the ways of availing a loan for those with a bad credit score is by securing the loan against an existing asset. Some assets that are commonly offered as collateral for a loan are:
When bad credit loans are availed against collateral, the amount of the loan will always be tied to the value of the asset allowed as collateral.
Bad Credit Loan are those loans which are made available to an individual in spite of a low or no credit score. As the lenders take on more risk when lending to less creditworthy individuals, they tend to compensate for it by altering other terms and conditions of the loan.
Though Bad Credit Loans make credit accessible to many individuals when needed, there may also be certain disadvantages that you should be aware of before opting for a loan.
MoneyView is a leading online lender which makes loans accessible even to those with a bad credit score.
You can apply for a Personal Loan on the app or on the desktop site easily from the comfort of your home/office.
The credit score requirement is more relaxed as compared to a traditional lender whose minimum requirement is 750 and above for any kind of loan. This would again depend on other factors like the number of existing loans, age, employment, and income.
MoneyView looks for a minimum Cibil score of 650 or an Experian score of 750. In addition, it also employs a proprietary alternate credit scoring model which analyses a host of other data points like mobile usage, financial data, etc to ensure that individuals with a bad credit score can also have access to personal loans.
Therefore, it is much easier to apply for a loan through Money View, especially when you are stuck with a bad credit score.
MoneyView allows quick and hassle-free personal loans to individuals.
You can get a personal loan for a host of reasons - right from meeting expenses of a medical emergency or a wedding to a holiday or to even buy the latest gadget in the market.
Some of the top features and benefits of applying for a personal loan on MoneyView are:
Though there are enough avenues for an individual to avail loans in spite of bad credit, anyone looking to avail loans should be aware of some of the factors associated with bad credit loans.