Ways to Fix Poor Credit History to Avail an Emergency Personal Loan

Posted by Ankit Verma on September 6th, 2021

When an emergency strikes, instant finances are required. If the savings are not enough, it becomes a challenging situation to manage emergency finances. An emergency can be anything related to medical urgency, extravagant wedding expenses, last few days of education fees, piling up house rent, major vehicle breakdown that needs urgent repair, etc.

In case of low savings or no savings, an emergency personal loan seems to be an ideal option. However, to acquire an emergency instant loan, most lenders look for a good credit score. If you have a good credit score to show your creditworthiness, the chances of emergency loan approval are higher whereas a poor credit history can delay or reject a loan application. This is because the lender has no proof confirming a borrower’s financial stability and repayment ability.

Hence, with a poor credit history, the lender may cancel your loan application or may levy high interest rates. Moreover, the credit score may vary from lender to lender; some lenders may set a high credit score while approving personal loan applications, while others may approve the loan with a lower credit score but at a higher interest rate or may expect a collateral.

So, how would you fix your poor credit history to avail an emergency loan? Here are some tips to improve or fix a low credit history:

Prove that you can repay the EMIs – Despite your low credit history, you can avail of a personal loan by showing your increased/stable earnings per month. If you prove your creditworthiness with income statements, the lender might gain confidence and approve the loan.

Maintain your credit history – Keep a check on your credit report at intervals. If you notice any differences or errors in the report, you can correct it a timely and improve the poor credit score caused to an internal discrepancy of the bureau.

Lower your credit utilization – If you are a frequent credit card user, opt for a higher credit limit. Don’t use more than 30% of your credit limit. Resisting credit utilization as per the set limits can enhance the credit score. 

Avoid multiple loans or inquiries – If you wish to fix poor credit history, avoid applying for multiple loans at a time from various financial institutions and NBFCs. Multiple inquiries within a short span of time can be predictive of a credit risk.

Clear Unpaid Loans – If there is an existing loan left unpaid, follow the repayment cycle and clear the loan before applying for a new one.

SimplyCash, an instant personal loan app powered by HeroFinCorp, a renowned financial institution, provides an emergency personal loan to both salaried and self-employed individuals. Salaried employees can avail of an emergency loan with or without any credit history whereas self-employed borrowers mandatorily have to verify their credit history.

Apart from this, your Aadhar card and PAN card are mandatory paperless documents to avail of an emergency loan starting from 50,000 - 1,50,000/- for the tenure of 6 - 24 months.

Eligibility criteria to avail of an emergency loan via SimplyCash

Minimal eligibility criteria make SimplyCash a viable instant personal loan app:

• Age limit 21 - 58 years old
• Minimum earning of Rs.15,000 per month
• Six months bank statement showing recent transactions
• Resident of India

With the above criteria and set documents, borrowers with emergency loan requirements can easily apply for an instant personal loan from a user-friendly SimplyCash loan app.