We tend to make a lot of mistakes in our life. One of them can be defaulting a loan per se. If you happen to default on your loan it can cause you serious damage not only mentally but also financially. It is always suggested that you make all your payments in time so that you can avoid silly defaults which can do serious damage to your credit report and land you up with a low cibil score. A low cibil score not only damages your chances to get a loan in the future but also can hurt you in many other ways.
Let’s take an example here You happen to have two credit lines, one a personal loan and the other a credit card. You used to make all your payments on time without a single default in the payment. You encounter job crises and your company decides to downsize you and you are left with other options. It is taking your time to find another job and in the meanwhile, you have already made a couple of defaults to your loan payments. Now, this gets registered with the credit bureau and when you pulled up your cibil report, you have seen that these entries are visible on the report and will be there for a very long time. You manage to pay the default amounts but what would you do on the credit report part?
Time passes by and you are in need of an urgent personal loan and you apply for one. The lender denies you a loan stating you are not creditworthy because of a low credit score. Now that you are in need of a loan urgently what are your funding options?
Today we will sight you some alternate funding options if you happen to have a bad credit score. Banks are not the only option If you are in the perception that you can get a loan only from the bank, this is wrong. There are a lot of other Non-banking financial companies available in the market who would like to lend you money despite your bad credit score. Not only this, there are many finance tech startups who provide loans just through the click of a button. The range of loans with such companies is less, but it makes a lot of difference if you are in need of an urgent loan and you want it sanctioned within seconds.
Seek loans from friends and family
This is always better than seeking loans from a bank or a financial institution. If you are in need of urgent funds the best way to get those funds is to get help from family and friends. They will be more than happy to help you out considering your situation.
Consider all financial intake options
There are many ways you can get money apart from your salary like loyalty bonuses, festival bonuses, incentives, gifts from family. Consider every gain when it comes to financial urgency, you will not know how this will help you.
Check out some microlenders as well
There are many microlenders available in the market who gives personal loans by keeping something as collateral. Collateral can be your house, car, or bond papers. This can help you with a quick loan in urgent situations where you won’t be denied a loan on the basis of a bad credit score. It’s always best to clear your dues before time so that it boosts your credit score. And in emergency situations you are not denied a loan because of a bad cibil score, because urgent problems won’t wait for your loan approvals.