Everyone loves weddings, but we might not all have the ready money to celebrate them in the style we would like to. While there is no specific banking term known as wedding loans, you can take a personal loan to cover any expenses you might have in connection with celebrating a wedding in grand style! For many Indians, a wedding is the one event in their lives that they do not hesitate to spend on, and taking a loan might seem like the most viable option. But what do you do if you have a bad credit history and are in need of a personal loan for wedding expenses?
How does a bad credit score affect chances of getting ‘wedding loans’ or personal loans?
It is generally advisable to have a credit score of 750 or above to qualify for ‘wedding loans’ – or more correctly, personal loans to cover marriage-related expenses. The higher your score, the better are your chances of your application being approved.
As a first step, lenders typically look for a minimum credit score of 750 before deciding whether to go ahead with processing your application. Since personal loans are not secured by any security deposit, lenders look at your credit score to judge if you can be trusted to fulfill your debt obligations. If you have a low credit score, it is a good idea to try and improve it before applying for a personal loan in order to avoid rejection.
Next, lenders will look at your Credit Information Report (CIR), commonly referred to as a credit report, to assess your track record of making repayments. If you have several late or skipped payments in your report, or have one or more delinquent accounts, it serves as a warning flag to lenders that you have not been a responsible borrower in the past and have failed to fulfill your prior loan obligations.
How to improve bad credit score in order to become loan eligible
The only thing to do for people who have poor credit and want ‘wedding loans’ is to take immediate steps to improve their credit score so that it reaches a minimum of 750. It can take 2-12 months to become loan-eligible depending on how good or bad your credit score is. It is possible to improve your score in a systematic and effective manner by using a secured credit card, getting ‘Closed’ status on previously ‘Settled’ or ‘Written-Off’ accounts and undertaking various other initiatives to improve your credit profile. With a little bit of patience, commitment and self-discipline, the wedding celebrations of your dreams is not far away!