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Is it possible to get a wedding loan despite having a poor credit score?
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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A wedding is one of the most memorable events and many always look to make this event a special one. To do so, a lot of financial planning is a must. Nowadays, many tend to opt for a wedding loan, a variant of a personal loan, to manage the additional wedding costs and to lower the overall financial burden. The availability of flexible repayment tenure on a personal loan allows you to repay the loan proceeds at your convenience. However, most lenders tend to offer a wedding loan to those with excellent credit scores. So, it is usually recommended to maintain a good credit score of 750 and above to be eligible for a personal loan. However, if you hold a low score, worry not! Discussed here are some of the important tips to avail a personal loan with a poor credit score.
After your credit score, lenders ensure to assess your income to determine your personal loan eligibility. So, once you hit on the personal loan apply online button, ensure to show your eligibility potential for EMI repayments. If you can convince the lender that you hold a stable and regular job with a high income, chances for loan approval are higher.
If you have a poor score, then you can boost your eligibility by adding a guarantor or co-applicant that has a stable income and a high credit score. Hitting on the personal loan apply button with a co-signer will enable the lenders to factor in their credit score, thus improving your approval chances. Likewise, securing a co-applicant will enhance the lender’s confidence that you will avoid defaulting on loan repayments. This is because if you default on your loan repayments, then the co-borrower will be liable to make the repayment on time. Also, in the case of any default, not just your credit score is impacted but also your co-signer’s score is negatively impacted.
There are times when mistakes and errors on your credit report may result in a low score, thus impacting your possibilities of securing a loan deal. So, ensure to make it a habit to periodically check your credit report from the concerned credit bureau. Doing so allows you to figure out any mistakes or errors, which may be responsible for bringing your credit score down. If you find any errors, ensure to raise a correction request with the concerned authority. A corrected report will instantly enhance your credit score and your personal loan eligibility chances.
Ending note
The above-listed steps can assist you in availing a wedding loan if you have a poor credit score. However, the most prudent way is to ensure your credit score is 750 and above, which you can do only if you periodically review your credit report. Also, ensure that once you have zeroed in on a lender to avail a wedding loan, take the help of an online personal loan EMI calculator to compute accurately the serviceable personal loan EMI, personal loan interest rate and repayment tenure. Once you know the suitable figures according to your repayment capacity, ensure to ask the personal loan lender for the same deal.
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