How to get personal loan when cibil score is low

Ans: Score between 700 to 900 is considered a good CIBIL Score. However, credit score above 750 or higher is preferable for a car loan. But CIBIL score is not the only factor that is considered for the sanction of the car loan.

Lenders will consider a number of factors when deciding whether to approve your loan application, including your credit score, income, debt-to-income ratio, and employment history. The fact that you have been a part of the organisation is not necessarily an automatic disqualifier, and considering that you have been taking all the necessary precautions to improve your credit score, it will help you to get a car loan.

You can consider multiple lenders and choose based on the best interest rates, terms and conditions or a close family member with a good credit score can be a Co- applicant in your loan, which can improve your eligibility for getting a car loan.

Ans: I'm sorry to hear about the challenges you faced during the pandemic, but I'm glad to hear that you've taken steps to address your financial situation. Rebuilding your credit score after experiencing defaults can take time, but it's certainly achievable with patience and dedication. Here are some steps you can take to begin the process:

Check Your Credit Report: Start by obtaining a copy of your credit report from all major credit bureaus (CIBIL, Equifax, Experian). Review the report carefully to understand the factors contributing to your low score and identify any errors or discrepancies that need to be corrected.
Pay Bills on Time: Moving forward, ensure that you pay all your bills, including credit card bills, loans, and utility bills, on time. Timely payments are one of the most crucial factors in rebuilding your credit score.
Reduce Credit Card Balances: Aim to keep your credit card balances low relative to your credit limit. High credit utilization can negatively impact your credit score, so focus on paying down your credit card balances as much as possible.
Limit New Credit Applications: Avoid applying for multiple new credit cards or loans within a short period as it can indicate financial distress to lenders. Instead, focus on managing your existing credit responsibly.
Diversify Your Credit Portfolio: Having a mix of credit accounts, such as credit cards, installment loans, and a mortgage, can positively impact your credit score. If feasible, consider diversifying your credit portfolio over time.
Use Secured Credit Cards: If you're struggling to qualify for traditional credit cards, consider applying for a secured credit card. Secured cards require a security deposit, making them easier to obtain for individuals with damaged credit.
Monitor Your Progress: Regularly monitor your credit score and credit report to track your progress. Many credit monitoring services offer free credit score tracking, making it easier to stay updated on your credit health.
Remember, rebuilding your credit score is a gradual process that requires consistency and responsible financial behavior. By following these steps and demonstrating responsible credit management over time, you can steadily improve your creditworthiness and regain financial stability. If you need further assistance, consider consulting with a financial advisor or credit counselor for personalized guidance.