How To Get A Personal Loan Without A Credit Score or Credit History
Your credit score is an important factor in getting you a personal loan. But, nowadays, people do get personal loans without a credit score. This is because there are many online lenders and instant personal loan apps that sanction loans without a credit score or credit history.
Here are some tips on how to get a personal loan without a credit score.
Leverage Your Income
Your income can be a major determining factor in the approval of a personal loan. For instance, if you are employed in a reputed Fortune 500 organization and are getting a good salary, then you can get a personal loan with less effort. This is because people with higher incomes are looked upon as financially stable and as trustable to repay the EMIs correctly on time.
Apply For A Lower Personal Loan Amount
Lending is a risky activity. A good credit score may lower such fears. But, when you do not have a good credit score, what will you do? You can start by asking for a lower loan amount. This may lower the risks that your lender perceives. Also, now that you are asking for a lower loan amount, the lender may feel less risky to sanction the personal loan amount.
Find The Instant Personal Loan That Suits You
Before applying for a personal loan, research well and find a personal loan lender that suits your needs. Obtaining an instant personal loan online is easy since personal loan apps have become highly popular. These apps give you instant personal loans even if you do not have a credit history.
Get A Collateral Based Loan
A personal loan based on collateral eliminates the need for showing your credit score. If you own assets such as gold, real estate, or FDs, then you can pledge them as collateral and get a personal loan with ease. This is because, from the lender’s point of view, the collateral acts as a guarantee in case you do not repay your loan on time.
Get A Co-signer
You can get a personal loan by using the credit score of another person. This person can act as your co-signer.
Additional Reading: How Can I Get 1,50,000 INR Personal Loan Without Cibil Score?