Life can be a journey full of surprises. You can never anticipate when it will throw a curveball. The only aspect in your hands is maintaining sufficient preparation so that you hit a home run rather than lose the game. This is especially true in the case of money matters.
Needs, emergencies, dreams, and wishes generally require exorbitant amounts of money to fund. These can sprout to existence at any point in time, and one can never have sufficient funds. You scramble around for fast personal loans and to no avail. You keep facing rejection because you do not have a good credit score.
What is a credit score?
A credit score is calculated from the analysis of a person’s financial history and is a representation of an individual’s creditworthiness. Your credit score functions as a metric for lenders, credit card companies, and banks to evaluate the risk they undertake when they lend money.
While the term has been in existence for a long time, most borrowers who apply for instant personal loans hear it for the first time when they face rejection due to it. Then the question arises – how to get personal loans without a credit score?
The fact is that an applicant who files for quick personal loans for the first time may, in reality, be creditworthy. But their credit score would be low, or non-existent since no previous records exist of their borrowing history. This, in turn, makes getting instant personal loans challenging, but not impossible. Here is a guide to getting a personal loan with no credit check.
There are several factors that affect credit scores. But when you don’t have a credit history, a variety of other factors come into play. Here’s what you can do:
#1 Leverage Your Income
A consumer’s income can be a major deciding factor in the sanction of a personal loan fast cash. For example, if you are employed by a Fortune 500 company and rake in a good salary, it takes considerably less effort to prove your creditworthiness. Primarily, personal cash loans are granted if you are determined to be financially stable and possess the ability to pay back the money borrowed.
You may be required to produce a few documents when filing for the personal loan – such as your proof of income. The proof of income earned can also be provided in the form of tax returns, typically for the previous two financial years. Or you could share your history of employment and pay stubs. Other essential documents include education certificates and bank statements.
#2 Apply for a lower personal loan amount
This goes beyond saying that lending is a high risk and an anxiety-inducing activity for a lender. A good credit score lowers such apprehensions and acts as an assurance for a safe return of the amount lent. There is a high probability that you, preoccupied with your own worries of procuring a personal loan, might fail to miss the dilemma that occupies a lending party. So how can you boost your chance of being seen as a trustworthy borrowing party?
A good start would be by lowering the amount of the loan asked. This acts as a catalyst in substantially lowering the risk and apprehensions your lender may perceive. In other words – since now you are asking for a reduced amount, a lender might feel comfortable in sanctioning your personal loan without a credit score.
#3 Get a Collateral Based Loan
A collateral-based personal loan eliminates the requirement of showing your credit score. If you own assets such as gold, real estate, vehicles, FD’s or shares, then you can quickly get a personal loan based on them. Here, you need to pledge these collaterals for acquiring a personal loan.