What is the best online loan lenders for bad credit?
Are you among those struggling to access credit? A vast majority of people are still not aware how the credit system works in India. Oftentimes, people neglect to keep a good credit score without knowing its repercussions. The full impact of not having a good credit score is only realized when they apply for a loan and get rejected everywhere or are offered unfavorable conditions.
Having a good credit score is absolutely vital in order to secure any loan at favorable terms like low interest rates and other terms and conditions. When you apply for a loan, lenders typically first look at your credit score and history in order to evaluate your repayment capacity and make a lending decision.
What do you do if you have a poor credit score and are in need of funds? In such times of need, you could turn to informal lenders, but you have to be very careful about who you are dealing with. Very often, it can unfortunately end in outright cheating or in exorbitant repayment terms.
What can you do?
The better option would be to use the internet to find a reliable lender who might be willing to lend to someone with your credit profile. A basic search would yield the result of several peer-to-peer lending companies. Peer-to-peer lending is the practice of lending money to individuals or businesses through online marketplaces that match lenders directly with borrowers. Some examples include India Money Mart, Lendbox, Faircent, etc. Do note that you still need some basic credit health in order to be eligible for their loan offers.
Features of Online Lenders: Peer-To-Peer Lending:
• Interest rates starting from 12% -- although this could be greater, depending on your credit history
• Loan amount available from a couple of thousands of rupees to a couple of lakhs.
• No collateral required
• Flexible repayment tenure from 12 months to 36 months – although this may vary from lender to lender.
• Minimum net monthly salary required: Rs. 25000 – though again this may vary from lender to lender.
Tips to follow if you have a low credit score:
• Do work on building a healthy credit history right now. Do not wait until the need for credit arises.
• Do pay your credit card bills on time, every time
• Do not pay only the minimum amount due - the remaining balance will attract high interest rate and you might possibly find yourself in a deepening debt situation
• Do pay your EMIs consistently on time. Make sure you avoid late payment at all costs as it has a large impact on your credit score.
Need Help?If you want to apply for a loan and think your credit score might not be good enough, CreditMantri can guide you on how to improve your score in the most efficient and effective way so that your loan application is approved. You will also be matched with the loan offer that best suits your profile and requirements.