The importance of credit score can be gauged from the fact that if it is strong, then the chances of getting a loan are increased. This 3-digit number from 300 to 900 means a lot for the loan. Banks and non-banking finance companies give loans again by checking the credit score of the person applying for the loan. A credit score of 750 or more fits most lending companies.
How to take a loan if the credit score is low
Loans on Property or Investment Plan: These loans are taken on the guarantee of endowment plan, fixed deposit, PPF, shares, property etc. How much loan will be given on this depends on the cost of that property or investment plan. You do not even need a credit score for this.
Joint Loan: Two people can apply for a joint loan, for which you can apply as a co-applicant with your partner or relatives. Currently, both applicants will have a credit score check for this. If either one has a low credit score and is compensated by the credit score of the other applicant, then a loan can be obtained.
Gold loan: In gold loan scheme, you can take a loan by pledging gold jewelery. How much loan you will get depends on the price of the pledged gold. The loan amount is determined after checking the purity of the gold and knowing the price in the gold market. A good credit score is not required for this.
Can borrow from friends: As a loan, you can borrow money from your friends or relatives.
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