While it is strongly advised to maintain a good credit score, many people stumble along the way and end up having low or no credit at all. This ultimately means that they cannot enjoy the various financial benefits available in the market and have to face numerous challenges when looking for low cost loans. Despite such a bleak outlook, all is not lost as you can apply for instant loans even when you have no credit. In this blog, we list everything you need to know about applying for personal loans with no credit.
What Does It Mean To Have “No Credit”?
Credit history is a record of how you have managed loans and their repayments. This plays a crucial role when determining your eligibility and the terms for financial services like personal loans. Lenders check your credit history, examining payment schedules for older loans or credit card bills to ascertain if you are capable of making timely payments. If you have never applied for a loan or credit, you might not have any credit. Furthermore, if there is no credit activity in your account for six months, your credit score is affected.
Can I Apply For Personal Loans With No Credit?
Although it is comparatively difficult, you can still apply for instant loans with low or no credit. Not all lenders accept applications with low credit and you must conduct thorough research and compare the interest rates to find the best options. Some lenders approve applications from individuals with no credit at higher interest rates, which makes it crucial to compare the available options.
How Should I Handle A Rejected Loan Application?
If your application has been rejected by a lender, you can get a free copy of your credit report within 60 days and work on improving it before filing an application again. Although it doesn’t damage your credit score, loan rejection can have a temporary negative effect after the thorough research that is conducted on your credit by the lender. You can apply for loans from other lenders, get a family member or relative to cosign, or wait for some time to improve your credit score before applying for personal loans again.
How Do I Improve My Credit Score?
Making the smallest improvements to your credit score can help avail of better interest rates. Take a few months to improve your credit score by paying credit card dues and loan installments on time. You can choose to put a hold on other monthly bills that don’t show up on your credit history like phone and WiFi bills and use the funds to service loans and credit card dues first.
While it is advisable and advantageous to maintain a good credit score, many people find themselves hounded by bad credit. In the event of an emergency that requires funds, you can still access instant loans from leading online lenders. Visit KreditBee to check your eligibility for instant personal loans with no credit and avail of some of the best offers available online. To get answers to all your questions about applying for instant personal loans, call 080-44292200 or email [email protected]