Obtaining a loan is hard enough, but if you are one of the people that is looking for a personal loan while having a bad credit then the path ahead of you is extremely difficult. In a country such as Sri Lanka your chance of finding loans for people with bad credit will be harder than many other countries particularly with the number of options being lower.
I have bad credit how do I get a loan?
As far as Sri Lanka is concerned you will only have a few options in the first place for a loan. Banks, Private institutions, Money Lenders and Friends or relatives. If you have a bad credit story then both banks and private institution options are not open to you. As far as lenders or relatives is concerned you will only be able to get bad credit loans at a raised interest rate or at the risk of alienating your friends and relatives.
However, you can now use an online service called cashwagon.lk as well to get personal loans for bad credit without a complex process. Where the personal loan amount you need can be obtained online through a simple process without your bad credit being a problem.
It’s a service that directly enables you to obtain a loan upto 50,000 rupees all within 24 hours. The loan application takes 5 minutes to complete and then upon approval you can withdraw the funds using your ATM card anywhere in the country.
How do I improve my credit score?
- First thing you have to know is that, you’re not alone. There are many in that position, and some of many who have ended up there without their own fault or by reason of circumstances. Acknowledge that this is a path that is followed by many.
- Secondly, you have to see how much you require as a loan? Now remember, you have to really find the exact amount you would need to borrow and then structure a way in which you can obtain it not as one sum, but many broken down portions of the sum. Why? Because if you borrow sums that are smaller and then are able to make those payments on time, your credit score will slowly improve and in the meantime your borrowing needs are also met. Also, it’s a safeguard against your credit score becoming even worse if you cannot pay because you will have only borrowed a small sum.
- Thirdly, account how much you owe and make a structure to pay off. If you have maxed out credit cards, negotiate a payment plan with the bank to pay it off. If you have obtained a previous loan and have missed payments again directly deal with the bank and agree on a payment plan. Don’t worry, the bank would welcome you paying back the loan rather than defaulting it, so they will be open to negotiating.
- Finally, you have to keep your expenses in check. Cut out anything that you cannot afford. Make sure paying back your debt is your utmost priority. Acknowledge that this is a long term process and stay committed to the payment plans you devise with the bank and with enough time you will come out with an improved credit score.