Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Bad Credit Loans

    A bad credit is when a borrower carries a higher credit risk. When a borrower has a low credit score, it indicates a bad credit. The creditors will avoid lending money to the individuals with a bad credit history as the borrower might default on making the payments.

    A borrower's credit history depends on various factors such as the amount borrowed, amount of available credit remaining and the number of times the borrower has defaulted in repaying the loan amount. The borrower's credit score will be affected by the late fee being charged or if you ask for an extension on the loan or opt for the loan renewal option.

    While the borrower might've been in a difficult financial state and defaulted on the loan repayments. But, the default results in bad credit score. That however doesn't mean that a person can or should not be eligible for further loans.

    People with bad credit history can get a bad credit loan. However, one must remember that a bad credit loan will attract a high interest rate resulting because of the bad credit history. But before applying make sure that there is a good chance for you as a borrower, to avail the loan, if the application is cancelled, it will damage your credit score further.

    What is a bad credit loan?

    A bad credit loan is a loan for people with a bad credit history. You get a bad credit history:

    • When you have missed repayments.
    • When you missed bill payments.
    • Or when you have had a failed credit application.
    • Or when you have never borrowed in the past and the lenders are unsure if they can rely on you to make the repayments. Hence making you too much of a risk to some lenders.

    When should you consider for a bad credit loan?

    You will only opt for a bad credit loan when there is not much of an option left for you. If there is no way you can manage your finances without having to borrow, do not take a bad credit loan.

    Only consider for a bad credit loan:

    • When you can manage the loan and its repayments and help repair a bad credit score.
    • When there is no other way to manage your current deficits.
    • When you want to consolidate your debt or extend the repayment period or cut your interest rates.
    • When you have taken a bad credit loan, do not take any further short term loans or credit.
    • When you have planned out your finances and are sure that you can make the repayments. Plan for overpayments to pay off your loan as quickly as possible. This is possible when you know extra money is going to come in your way.

    Do proper research before taking a bad credit loan. You need to look for:

    • The cheapest interest rate that is available.
    • Make sure you are eligible to get the loan before applying for it. If the application gets rejected, your credit score will be damaged further.
    • Get a better idea of the actual rates available and make the right application.

    What is the difference between secured and unsecured loans?

    Secured Loans:

    If you have a house or an expensive car or property or any other significant asset, then you can use it as a collateral. This will in turn make you eligible for a secured loan as an option. Secured loans are given at lower rates than the personal loans. Sometimes, when you need a huge amount, this will be the only option that you will be left with. But always meet your repayments as you might lose out on the asset you kept as a collateral.

    If you have had difficulty making payments on your loans never keep your home as a collateral. Take different factors into consideration before you turn your Unsecured Loans to secured loan especially if you have had a bad credit history. The rates may seem attractive, but if you miss making payments, you might lose out on the asset you kept as a collateral.

    Unsecured loans:

    Unsecured loans are given to the borrower based on their creditworthiness. You as a borrower will not have to have a collateral. You must have a high credit score to avail an unsecured loan. The loan is not guaranteed by any asset or property. The interest on the loan is fixed and due at the end of a specific time period.

    To avail an unsecured loan, maintain a high credit score. You must make all the payments and repayments on time and not default even once.

    Are there any alternatives to bad credit loans?

    Yes, there are limited alternatives that you can consider before opting for a bad credit loan. The options are:

  • Speaking to your current financial provider to offer you a tailored loan considering your circumstances. The current financial provider may be able to help you out in this regard than you going to a new provider for a loan.
  • You can get an overdraft on your current account at 0% interest rate for a certain amount. Never cross your limit on the overdraft as the unarranged overdraft fee will turn out be very expensive.
  • Credit unions that are community operated can offer a real alternative to banks to those going through financial difficulty. You need to be a member of the credit union to avail the loan. These organisations are supportive and their main intention is to serve their members.
  • Credit cards are another option that is available to those with a bad credit history. There are dedicated cards for the people with bad credit ratings. Though they may have lower credit limits or with higher interest rates. Also remember a failed application will damage your credit card further.
  • There are payday loans. But it is advisable not to take this loan.
  • Use your own savings for as long as you can. It is better to have used your saving than to pay the high interest that are being charged on loans.
  • The government also offers interest-free budgeting loans to those who can't afford their rent. But those with urgent requirements only will receive the loan.
  • Turn to your family and friends for a loan. You can work out a mutually beneficial deal out and they will be much more understanding than any financial body. You can agree on a feasible interest. Be clear as to how you will make the repayment as there is a good chance that the relationship may be affected due to this. Agree on a certain time frame and commit to it.
  • Whatever the problems are, stay away from the loan sharks. Consult with your existing lender and work out a deal that will avoid you from defaulting your payments and saving you from a bad credit history. The lender will at all times assist you and advise you how to go about your current financial status.

    Bad Credit loans in India

    In India, there are no bad credit loans offered to the borrowers. So, what if a person needs immediate cash and it is an emergency. But due to his bad credit score, he will not get any loan from the leading financial providers. In those cases a person can consider a bunch of alternatives than applying for a loan with the bank. If a person with a bad credit rating applies for a loan with a bank and the bank rejects the application, the rejection will affect his credit rating further. Now that is something that you would not want, making a situation worse than it already is.

    So, the next question is how will you deal with this problem in hand?

    Your need for immediate cash can be solved in a bunch of different ways. First off, go talk to your current banker with whom you have had maintained business with for years. It could be a neighbourhood bank where everyone knows everyone and knows your situation well. If you have had a nice rapport with the manager, he can surely help you work out a deal that will work for you as well as the bank. This way you get a chance to fix your bad credit history by making all the payments and repayments on time or way before it. Your current banker will understand why you would've defaulted in the previous payments and understand your situation and help you out. But, if you approach a new banker, he would not be so considerate of your situation and another rejection in your loan application will further damage your credit ranking.

    In India, if you have a fixed deposit account maintained with a bank, they will provide loan up to the limit of the amount in fixed deposit account maintained with them. You can also get a credit card on your fixed deposit amount. Though the cash withdrawal limit might be lower, it will still take care of the need for your immediate cash requirement. But never cross the limit that has already been provided by your banker.

    Indians are all about saving. If you have deposited certain amount at some bank, break the deposit and use the money, it is still better than you getting into a debt. Try to stay away from debt as much as you can. It is better to find a way to manage your own expenses. There won't really be any need for you to be taking loan at certain times. Some items are not even worth taking loan for. And most importantly there is absolutely no need to take a Secured Loan. It might seem like a sensible option at that particular time but losing your house, property or your car over loan is not worth the use the loan amount came for. It is always a trap and the banks will not take into consideration if you will be homeless or won't have shelter all they care about is retrieving their money. In that case, you can always borrow from your family and friends. They will be more than willing to help you out. And they will be more considerate of your situation and will not take advantage of the vulnerable situation that you are in.

    Whatever the problems are, stay away from the loan sharks. Consult with your existing lender and work out a deal that will avoid you from defaulting your payments and saving you from a bad credit history. The lender will at all times assist you and advise you how to go about your current financial status.

    Apart from these there are also Co-operative societies that lend financial aid to the members of the society. Make yourself aware of the various lender around the area you reside. There is always a way that someone will go out of their way to help you. You can always approach the religious institutions that will have a certain amount set aside to help those who are in financial difficulties. If not, there are always family members and friends that you can ask for favours.

    It is always a feasible option to turn to your family and friends first as they will be considerate of your financial situation and not try to exploit the fact that you are in urgent need for money. Also, you can set a reasonable interest rate and the term of the loan. But make sure you do not default on the payment as the relationships may suffer due to this.

    Stay away from the loan sharks and from the secured loans as there is no way out of the arrangement unless you have made all the payments. And when you do take a loan, make sure you make all the payments on time and improve your bad credit history. For as long as you can use the money you have saved instead of getting more debt than you can handle. Always clear off a loan first before taking another one. Do not take a loan unless it is necessary.

    Bad Credit Loans Reviews

    • Bank Bazaar Personal Loan
      "Good website for credit score"
      0.5 3.0/5 "Satisfactory"
      Bank Bazaar online application is good I used to check my credit score. I am fine with the report and information but I suggest post process should be improved, based on the customer's profile the loan eligibility should be more. However the response is good from your end.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 25, 2019
    • Kotak Personal Loan
      "Network should be enlarged"
      0.5 4.0/5 "Great!"
      My area pin code was listed in Kotak Mahindra bank, there was no alternate option to take the personal loan. However the response is very good they reached me on time. I believe the interest rate and charges are nominal for the personal loan. They need to include all area for the loan approval.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      My friend had suggested me about the bank bazaar for checking credit score as he regularly check his score through bank bazaar,and this was my first experience even i have check credit score through bank bazaar,and i got call from them that i am eligible for loan,so i have applied, i have downloaded mobile application,it is easy to access.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • Early Salary Personal Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      The service was good but one i will do payment i will get to know about it,and The loan amount which they have given me was not sufficient i have been expected more,and the rate of interest they have charged me was nominal,they have charged me up to 5.5% ,and they have not charged me processing fee,but for doing payment i need expected up to 6 months of tenure period but only for 2-3 months they are giving as tenure period.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have applied my loan through bank bazaar the loan got cancel but i am happy with the services . Their Mobile application is easy to use and light. Overall their platform is really useful for comparing . Only they ask so much of documents . The Customer support follow up was also good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 25, 2019
    • Tata capital Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I applied my loan through TATA CAPITAL but the application got cancel and the reason is i am in need of car loan but they were providing me personal loan . But whatever experience i got was good , i do not have to struggle much it was very hassle free process . Overall it is good .
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 25, 2019
    • HDFC Bank Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have got my personal loan through HDFC BANK , they charge processing fee and tenure period is 3 year . The rate of interest is good with this bank, and they provide sufficient loan amount . Customer support is good and they provide preclosere option with this bank .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I applied my loan through bank bazaar but it got cancel because of some personal reasons . Bank Bazaar is a good platform to compare all the banking products available with various banks. I never faced any issues with their services. Overall it has been very good experience with bank bazaar . Website is easy to use .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • Tata capital Personal Loan
      "They need to improve services"
      0.5 3.0/5 "Satisfactory"
      I applied for my loan through TATA CAPITAL . I was in need of business loan but they was providing me personal loan so i rejected the application . I am not happy with their customer service response they said me they will call because i was facing some query but they did not .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • HDFC Bank Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      There is a Personal Loan going with HDFC BANK . R. My application was processed on time and rate of interest are not nominal here. The tenure period is 5 year . The loan amount is 400000 and it is sufficient . Within 5 min i got my loan amount . Overall it is good .
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have been using BANK BAZAAR for while.The customer support is excellent they are very polite when they are talking , i did not face any issue with them and even at the time of documentation, the process was good . I came to know about this website through online .
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • Tata capital Personal Loan
      "Very slow process "
      0.5 4.0/5 "Great!"
      I had applied for a personal loan with TATA CAPITAL but i cancel the application because here the process was very slow they are not giving the loan soon it was taking so much time . So i took my loan from HDFC BANK they provide me 400000 of loan and within 5 minutes i got it .
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I applied for a personal loan via Bank Bazaar. I have been using the Bank Bazaar services for a while. Mainly i use to check credit score , credit card offers through bank bazaar . After applying for loan they use to call immediately that was best thing of bank bazaar .
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 25, 2019
    • Early Salary Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My personal loan amount was taken with EARLY SALARY , the customer support is excellent with this bank , i can connect them easily with them . The tenure period is 1.5 month and loan amount is up to the mark . They provide interest rate . I do not have to struggle much .
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using the Bank Bazaar services for a while. The service is best, I got the loan with in few days, Documentation was very good and hassle free. Bank Bazaar is a convenient time saving services to purchase various financial products from one website.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 25, 2019
    • Tata capital Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I had applied for a personal loan with TATA CAPITAL and i am happy for the reason that my application processed on time and there was no delay. The rate of interest is 13.5% reasonable here. My loan has a tenure period of 3 years . I applied for 100000 and i got the same amount .
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 25, 2019
    • HDFC Bank Personal Loan
      "Excellent services"
      0.5 5.0/5 "Blown Away!"
      I had applied for a personal loan with HDFC BANK and it happened to take few days. Over all I am happy with their service. I close this loan . I thought i would get loan on instant Approval, but when contacted they said they have some technical issue and later it was sorted out. Interest rates are reasonable here.
      Was this review helpful? 0
      , indore
      Reviewed on Mar 25, 2019
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      Customer service response is very satisfactory, i did not face any difficulties throughout the process. I have been using bank bazaar service for past many month. I came to know about their services when i am checking credit score . Overall my experience was good.
      Was this review helpful? 0
      , indore
      Reviewed on Mar 25, 2019
    • Kotak Personal Loan
      "Shud stick to the promise ROI watever they said initially"
      0.5 3.5/5 "Pretty good"
      My personal loan was taken with KOTAK MAHINDRA BANK , they provide 200000 of loan amount . The tenure period is 3year . They charge very high processing fee it is 4000 and service was good . Initially they said 10.99% rate of interest but later they charge 11.25% .
      Was this review helpful? 0
      , indore
      Reviewed on Mar 25, 2019
    • HDFC Bank Personal Loan
      "Good door step service provider"
      0.5 5.0/5 "Blown Away!"
      I got the door step service through HDFC, the field executive came to my place for documentation. I got preapproved loan because I am an existing customer. I got 12% of interest for the personal loan amount Rs. 3.7 lakhs with the tenure of 60 months. They have foreclosure option after 6 months of emi but charges applicable.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 25, 2019
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