It is usually difficult to get a loan with a bad credit score and even if a loan does get approved, it is with a high interest rate. However, there are a few ways to get a loan even with a bad credit score. The best way to do this is to have a stable job and a low liability. Having a low liability means that the amount that you owe is not too much and that you are not in big trouble if you cannot pay it back right away.
A 12-month loan is also known as a short-term loan and can be used for business or personal purposes:
- 12-month loans are now possible if you have a good income from a reputed company or if you have good social media profiles.
- Linking your Facebook, LinkedIn and Google profiles can get you a loan.
- Most 12 month loans are collateral free but can vary based on the loan provider.
- You could also explore peer to peer loans, advance on salary or secured credit cards.
The good news is that there are ways to get a loan with a bad credit score. The first thing you need to do is to improve your credit score. The easiest way to improve your credit score is to generate an income. Once you have an income, the next thing you need to do is to reduce your liabilities so that your credit utilization ratio is low.
If you want to improve your credit score, you could subscribe for Credit Mantri’s Credit Improvement Service (CIS) and better your credit score so that you become eligible for low interest personal loans.