How Can You Get a Personal Loan Without Credit Score?

How Can You Get a Personal Loan Without Credit Score?

Your credit score plays a huge role in defining your creditworthiness. It doesn’t matter which type of credit facility you’re opting for, the lender will always check your credit score first. But in some cases, it may possible that a lender allows you to give a loan facility without any credit score. You must be thinking about how can an individual get a personal l​ oan without credit score​. There may be a situation when an individual, who is applying for a personal loan, doesn’t have any kind of credit activity in the last 36 months and have zero credit score. So how will a lender provide a loan facility to such an individual?

We will be telling you the answer to this question in this article. As you know that a personal loan is a kind of unsecured loan, that’s why a lender finds it a bit risky to give it to an individual without any credit score. But if you’ve heard that it’s impossible to get a personal loan without credit score, it’s not entirely true! There are various ways by which you can get a personal loan without ​credit score​ that you can see below. So, keep reading on!

Different ways by which you can get a personal loan without credit score?

● Opt for a lower loan amount: W ​ hile taking the personal loan, if you will ask for a higher loan amount without having any credit score to back up your eligibility, it may be possible that the bank rejects your loan application as it has a higher risk in it. So it’s important that you request a lower loan amount so that the lender may feel more secure in giving you the loan amount. A lower amount will also help you in easily repaying the loan.

● Income Proof to back your application: W ​ hen you can show the lender that you earn enough to pay your EMIs, it may be

possible that the lender may sanction you the loan amount. You must have your income proof documents ready to show your income eligibility. This creates trust in the lender’s mind as you have no credit score. Also, you should remember that the bank may charge a higher rate of interest than normal when you opt for this method.

● Co-applicant or Guarantor: ​You can also apply for a personal loan with a co-applicant or guarantor who can provide the required KYC documents to the bank. If the lender finds your co-applicant/guarantor to have a good credit score and regular monthly income, the bank will give you a ​personal loan​. By making timely repayment of the EMIs, you can gradually build a good credit score.

● Opt for the NA or NH Case:​ The NA or NH shows the absence of any type of credit activity in your name. When you apply for a loan in this category, the bank may offer you the loan at a slightly higher rate of interest.

● Funds for Repayment: ​Apart from all these methods, it’s important to make sure that you have a steady source of income or sufficient funds to timely repay the loan amount. Otherwise, your credit score will go down at a much higher rate. And then, you will find great difficulty in getting any kind of loan facility in the future.