Having a weak credit score is nightmarish enough; and when you add the agony of a sudden requirement for Personal Loan, you are surely in trouble. A lender will consider a borrower with weak credit as a bad egg, someone who can convert into a poor investment. However, these assumptions based on your credit history, are often a result of an outdated theoretical approach towards credit assessment. Sigh! if you must, but remember that all is not lost. Your poor credit history is not the end of the road to getting the personal loan you need.

So, how can you get a personal loan quickly and without too much hassle?

There is good news in store for borrowers like you. With finance merging with technology in progressive ways, there are not many deterrents left for those looking for personal loans. This rings true with the peer-to-peer lending sector making its presence felt in the Indian market. Today, P2P lending platforms like Faircent are paving the way for borrowers to avail unsecured personal loans at attractive rates. At such P2P lending platforms, you may not be written off completely.

For instance, at Faircent, a fully automated underwriting mechanism is used to evaluate borrowers using more than 120 parameters across more than 400 data points – social, financial, personal etc in nature. The mechanism uses technology to evaluate the borrower’s ability, stability and intent to take and repay the loan and does not depend solely on CIBIL score (though it continues to be an important factor). More than 25 percent of personal loan requests on Faircent are for consolidation of loans taken from other sources, be it for over dues on credit cards. Small Business Loans are the second most popular purpose to seek P2P loans. The best thing about a P2P platform is that unlike financial institutions and banks (that don’t look at the bigger picture but just credit score) it gives borrower’s a better shot at getting loans - provided they can explain why their credit rating has become weak. If you are creditworthy enough, then, on a P2P lending platform, you can meet several lenders waiting to invest in you.

How to improve upon credit score?

Regardless of the personal loan availing alternatives that you have at your disposal, it’s always good to improve your credit score rating by avoiding late payments, not defaulting on loan payments, and paying your credit card expenses in time. These tips will help you improve upon your credit score.

• Avoid increased utilization of your credit limits as it can impact your credit score negatively. Use your credit card wisely and pay all dues on time and consistently.
• Reduce your current balances by using your credit facilities sparingly. As high current balance will pull down your credit rating, keep only those cards that have a good repayment track record; this will help build a viable credit history over time.
• By paying the full amount due, rather than just the ‘Minimum Amount Due’ you will be able to avoid negative CIBIL reporting and late payment fees alike.
• Try not to default on your EMIs or delay them.
• Establish a non-credit hungry behavior by having clean bank overdrafts, less personal loans, minimum credit, secured loans, etc.

A good credit score reflects upon your disciplined spending as well as repayment habits. But then, as stated earlier, a low credit would not necessarily mean that all borrowing avenues are closed for you. You can always set your mind away from regular mediums of financing and switch to P2P lending at sites like Faircent.com. Another huge advantage is that location does not matter. With the whole process being online, whether you want Personal Loan in Bangalore or Personal Loan in Pune, now you can get the same with just a few clicks of the mouse.

So Sign Up now!