You may require a loan for the fulfillment of some plans you have made. Low credit score loans are almost impossible to get as there are very few banks who invest money where they don’t see any guarantee to recover it from the person who has taken the loan. For your low credit score, the loan applications may get rejected. Many people, who have applied for a loan, have to return barehanded. But some agencies are there or to be specific, some non-banking financial agencies allow people with the low credit to get loans. Here in this article, you will come to know about how to get a loan while having a poor credit rating.
Know Well about Credit Rating?
When you submit an application to any financial organization to allot you some amount as a loan, they first look into the fact whether you are trustworthy or not. Basically, credit rating is the quantification of the trustworthiness of a person. It implies whether the person is capable enough to repay the amount of loan or not. Credit rating is not only given to a person, but it is also given to an agency too which is looking for a loan. In fact, a country also gets a credit score while it borrows money from the fund made by the international agencies. You will see many agencies and websites claim to check your credit score for free and give ads in different virtual media. But not all of them are that much trustworthy. So the best way to get a credit score is to get it from a nationalized bank.
Factors Affect Credit Ratings
There are many factors that put a deep impact on the credit score of a person or an organization or a country. The agencies mainly focus on the financial strength of the person, past histories of financial activities and so on to assign a credit score. There are several national and international agencies too to assign credit scores like ICRA, CRESIL, and FICO and so on. They rate the person or the companies from AAA to D as their credit scores.
Some Agencies to Provide Low Credit Score Loans
To give some ray of hope to the people having low credit scores, some NBFCs provide low credit score loans as they consider the need of the person for money.
- Upstart is one of those companies that approve your loans even if you have low credit scores as low as 580. Along with the score, you must have an annual dispensable income of $12000. They also approve applications of those who don’t have a history to have a loan before.
- OneMain is known for the financial services it provides to its clients. They also provide loans to those who are having poor credit ratings. It is a non-banking financial organization and it will approve you a loan of 5 lakhs if you are having a credit score of a minimum 600 till 650. You should show that your men’s annual income is not less than $50000.
- LendingClub lets you borrow money if you are having a credit score of 600. You should have a history of borrowing money before for at least a term of 3 years. The ratio of your borrowed amount and the annual income should not be less than 2.5. But the good news is you don’t have to pay any penalty for prepayment.
- Prosper Borrowers also allows you to have loans if you have a credit score not less than 640. You should have a minimum annual income of $ 89000 and the ratio of debt to capital is needed to be not less than 50%.