If you have a poor credit score, then you will not get any personal or mortgage loan because banks cannot approve your loan with bad credit scores. Basically, banks and lenders do not take any risk in lending money to people who have bad credit scores, and few of them can provide you short term credit impaired personal loans with a higher rate of interest.
What is Credit Impaired Personal Loans?
Impaired credit score means a bad credit history, and if you do not pay your utility bills, taxes, credit card dues and other EMIs then you can find some problems in your credit reports. In this case, no bank will give you a personal loan and you need to search for some private lenders who offer credit impaired personal loans online. Initially, they can charge you a higher interest rate, but after a certain period, you can top up your loan and apply for a fresh personal loan. The lender will close your existing loan and approve a new loan with the top up amounts. They will reduce your rate of interest. But in the case of banks, your application can be rejected without any prior notice because banks cannot take such liabilities. It is suggested to pay your dues on time and maintain your credit score.
Missing payment, late payment, skipping a payment or existing EMIs, exceeding credit limits and making multiple applications for a loan within thirty days can reduce your credit score. You can increase your credit score by making regular payments, clearing your existing dues, and maintaining your savings. Apart from that, there are some financial agencies available that can help you to increase your credit score. You can search for them online and repair your credit score.
How would you avail Credit Impaired Personal Loans?
There are different types of credit impaired personal loans available online such as secured loan, guarantor personal loans, and payday loans. You can compare their rate of interest along with the hidden charges from different lenders, and then choose the best credit impaired personal loans for you.
- Secured loans: If you have a bad credit score, then you can apply for the secured personal loan. In this regard, you need to mortgage your assets such as a car, business or home to avail the secured personal loan. If you do not pay the loan on time, then the bank or lender will auction your property to recover their loan amounts.
- Guarantor loan: Some banks and lenders can offer you credit impaired personal loans that are guaranteed by your family member or friends. If you cannot pay back the loan amount on time then the lender will recover the outstanding dues from the guarantor.
- Payday personal loan: If you need to borrow a small amount as credit impaired personal loans then you can easily apply for the payday loan. Banks and lenders do not check the credit history for small amounts and they can approve your payday loan by checking your financial documents. If you do not repay the amount on time then bank will charge a heavy penalty on your loan account.
How would you apply for Credit Impaired Personal Loans?
Now you can find many private lenders online that offer instant loans, and you can apply for credit impaired personal loans on their official portal. But before you apply for the loan, you must check their interest rate, processing charges, late fines, and pre-closing charges. Apart from that, most of the banks do not allow part-payment on their personal loans and you must inquire about this facility from the banks.
Still, if you have any doubt then you can contact the bank’s representatives and they will assist you to avail credit impaired personal loans.