No matter how prepared you may seem in life or sometimes due to mismanagement of the finances, there may be times when a financial crisis hits you and you find yourself in the need of immediate cash. Taking loans should always be the last resort, but it’s all about the situation that time.
At such difficult times, your friends or family come to your rescue with soft loans. The other option is an easy and hassles free loan from a lender who would ideally give you an immediate approval of your application and disburse the loan as soon as possible.
It is indeed easy to get a personal loan these days, but in order to get a fast approval on a personal loan you need to have a good CIBIL score. But what if you do not have a score at all? Is the option of accessing a loan closed for you? Definitely not! There are several solutions, where one can get no credit check loans.
What is credit history and why is it important?
A credit history is a report compiled with information on how you manage your debts with various banks. The credit bureaus and credit reporting agencies are the one who maintain you credit score on the basis of information supplied to them by various banks.
Options for no credit check loans
First up, you need to know the problem at hand. A traditional top of the line lender or Bank is unlikely to give you a personal loan without CIBIL score.
In India, different channels are opening up to fund different emergencies. Many NBFC has come up to fund the medical emergencies and provide loans for medical treatment.
The other option is to consider a peer to peer (P2P) lending platform. Read a detailed post on Peer to Peer Lending here.
While no credit check loans may get fast approval, but approaching for such loans has its own disadvantages as well. These loans come at a very high-Interest cost.
So it’s always wise to be doubly prepared. Besides following the basics of financial planning like maintaining an emergency fund, having adequate insurance coverage, keeping liquid investments in the portfolio, you should also work on building and maintaining a good credit score.
Consider a secured credit card
If you are accessing a personal loan without any pervious credit history, your best bet is to apply for a secured credit before making a loan application. A secured credit card is offered by the top lenders in India against a fixed deposit.
Get a supplementary credit card
If you do not have the option of taking a secured credit card against a fixed deposit, you can request a family member to add you as an authorised user of an existing card that he or she uses.
Try getting a small consumer loan
If you do not want to consider the credit card option, try getting a consumer loan to purchase a mobile phone or any electric goods. It is not otherwise a wise thing, but just to build the initial score you may try this once or twice.
Thus, in conclusion, it is fair to say that a good Credit history is an advantage when you are trying to get a loan at competitive interest rates.
“Are loans available to people with no credit history” is a guest post written by Team Credit sudhaar.
