It is true that suffering from bad credit will prevent you from getting a loan process approved. You have already worked hard to get rid of bankruptcy, and you have succeeded to some extent. But that does not change anything on your credit score. The majority of Indian banks and financial institutions have this rule of not approving loan application from people with bad credit score.
That’s why some private lenders from Indian institutions came up with the idea of bad credit loans. As you can understand from the name itself, through these options, you can get your loans approved even with bad credit score.
Going for the types:
Right now, bad credit score has been a common issue among people. Therefore, the market is flooded with so many different types of loans for those people with a bad score on their credits. It is mandatory to learn about the best options before jumping on the final one.
Home equity credit line:
In case, you are lucky enough to have enough equity in the property, then home equity line of credit is the best option to choose. You are about to receive tax deductible and low-interest form of the credit line. However, following this point might provide the equity into jeopardy, in case; you fail to repay the amount of time. So be very careful on that. But, if you have proper income and disciplined manner to pay money on time then you are free from any problems.
Credit union applications:
India is known to have one of the greatest numbers of credit union activities, covering 20 million. Credit unions are more or less same to banks but owned by members with one thing in common; they all belong from the same geographic area or industry. Credit unions are defined as non-profit organizations, which pass earnings to other members in lower fees and higher range of customer service. You can log online, check out for the unions located near your place, and give them a call for discussing your loan loans. They are most welcome to help you with your approaches.
Peer to peer loan:
If you are suffering from bad credit score, then P2P lending is the perfect platform for you to work on. This online platform helps in borrowing money directly from individual and not any institution. This streamlined process is now growing into popularity and comprises of win-win solution for borrowers. In case you want to pay less rate of interest, this one is the one. It is also great for investors, trying to earn higher rate of interest.
Choose whichever matters the most:
Always plan to choose the best option as you have plenty of them right in front of you. Depending on your needs and basic requirements, the options might vary. Apart from the mentioned significant options, there are others available too like procuring loan from friends or family and even appeal to co-signer. No matter whatever is the case, it is mandatory to get along with the best help near your locality. That can work wonder for you. So now, if you have less amount to spare with poor credit history, you know just the right steps to take.