If You’re CIBIL Score is Bad, You Still have Options
Finding out you have a bad CIBIL score is disheartening to say the least. It is more astonishing when it comes as a revelation on our checking credit score in lieu of a rejection of the loan. People generally do not check their credit score regularly as it is suggested but when they check because of some financial crunch they come to know the real position of their score. However, in such situations also, all might not be as bad as it seems. You still have options to look up to even in cases of bad CIBIL score.
The following are some of the options that are open to you even in cases of bad CIBIL score:
- When a CIBIL score is so low that you are rejected for a loan, you should considering using or improving your spouse’s score. This might help if his or her score is good or at least better than yours. You can make your spouse and you, the joint holders of the loan account in that case. The above case applies to people who are married, in case you are not, then here are a few other options.
- There are many companies who are comfortable with offering loans to people who have bad credit scores. But in such cases you might be charged with higher rates of interest than that going on in the market. This might hit you hard with your finances but in the long run, it will reconstruct your CIBIL score. In a few years, if you don’t miss payments, your CIBIL score will build and you will be eligible for loans with better terms – meaning not as high interest rates to pay.
- There is a new option coming up from abroad. People in foreign countries lend among their peers and charge high rates of interest. This ensures that you do get the loan if banks are not ready to lend you. One thing that differs here except the interest rates is that, the loan amounts are small, but it is ensure that you will have cash even if you have bad score. On the downside, borrowing from peer to peer lenders have no effect on your CIBIL Score.
- Joint families in India or closely knit families are the examples where such type of banks works. Usually what happens, members of the family form a family bank, where the customers and members of this kind of bank are family members itself? Family becomes strength in case of bad score. Sometimes, loans are provided to individuals who are not the family members, so in such scenarios, high interest rates are charged.
- One way out to get loan from the bank in cases of bad CIBIL score is to go for collateral loans. Many banks provide loans against you capital investment (shares and securities), fixed deposits, gold loan and others. In such cases banks usually does not refer to you CIBIL reports as you have the balance in your account for which you are taking loan for.
- When nothing seems to be working, reach up to your friends and relatives. It is an open and oral agreements where you can ask for a loan from your friends or relatives which depends totally on your personal relations. Plus, what matters in this case is that the lender should be aware of how much spendthrift you are. Else they will not lend as they will be in trouble otherwise 😉
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