We all have heard about credit scores, what a good credit score is and what a bad one is. We also read tips about how one can improve their credit score to get a personal loan. But when an emergency situation arises, there is very little a person can do on an urgent basis to improve their score. Here’s what one can do if they have a fair credit score and are looking for a personal loan.
Before you dive deep into the tips, you should know that 600 is a fair credit score but it can get difficult to get a loan but not impossible. It can be a stressful situation but luckily there are some options available.
Build your score
This seems difficult to do on short notice but there can be an error in your credit score. So the first thing to do is to quickly check if your credit history stated is correct. If you have any pending bills, make sure you pay it asap.
Get a cosigner
This is another option to opt for if your credit score doesn’t let you avail an instant personal loan. You can convince your family or friend to cosign your loan documents. Somebody who has a good credit score can help you get a personal loan. This option is much time better than asking for money from your friends or family.
Find a personal loan online
If you don’t have a good score you approach the digital lenders. One can get a personal loan with minimum documents within a day or so. These online lenders are available online via loan app. Apps like CASHe let the user get a personal loan starting from INR 10,000 to INR 2 lakh. These are unsecured loans which means you don’t have to showcase any asset ownership. The interest rates are usually low as these are short term loans. The entire application process is done online via the app, even the document submission. Once the loan is approved, the amount is directly transferred in your bank account.
Personal loan against collaterals
If you own a car or a property or even gold assets, you can get a loan against them. You can use these documents to get a loan. These are secured loans. If you fail to pay back a secured loan the lender can possess your asset. Many sure you repay secured loans on time to avoid risking your assets.
Credit unions will generally be better than banks since they are non-profit and member-owned institutes. You approach one of them and check the availability, they do provide personal loan with a fair credit score. Even so, it will help your cause to have a large savings amount with that institution, otherwise, you may need to bring a cosigner.
Getting a personal loan online with a fair credit score of 600 is possible in today’s time with online lenders. This is a secured way of getting instant personal loans with minimum documentation.