The first thing that banks check when you apply for a loan is your credit score and credit history. If you use a credit card or have borrowed before, your credit score will be based on how well and how timely you paid off your debts.
Banks generally reject two-wheeler loan applicants who have a poor credit score, since they are more likely to avoid repaying their debts. However, even if you do not have a good credit history, you can get a loan through the following means.
1. Compare the lenders
While getting two-wheeler insurance is easy when you have a good credit history, it is slightly more difficult with a poor credit track record. However, many lenders today have shifted their focus from credit scores to other things, such as the stability, income source and the social media profiles of the loan applicant. Therefore, you need to find a lender who considers these aspects along with the credit score, if you want to get a two-wheeler loan.
2. Negotiate with lender
A credit score is a representation of the past repayment history of loans. However, since then your economic condition may have improved greatly. You need to convince your two-wheeler lender of this fact so that the company understands that you will not default on making the payments on time this time around.
3. Pay the majority in down payments
Even with a poor credit history, if you manage to pay a large portion of the cost of the bike or scooter through the down payment, you would need to borrow less. The lender may think twice while lending bigger sums to a person with bad credit, but it will not reject the application if the loan amount is nominal. Use two-wheeler loan EMI calculator while determining how much you can afford to down payment. The two-wheeler loan calculator online will also help you ensure that you do not end up with huge monthly payments.
4. Get a co-applicant
A loan where you are the sole applicant may be rejected based on the low credit scores. However, if you apply for the loan along with another person, the banks may not be so fast in rejecting the application. In fact, if the co-applicant has a good credit history, it is almost guaranteed that you will be lent the necessary sum.
However, throughout the entire procedure of the application, make sure you use the two-wheeler loan calculator to determine how much you are comfortable borrowing.
Banks generally reject two-wheeler loan applicants who have a poor credit score, since they are more likely to avoid repaying their debts. However, even if you do not have a good credit history, you can get a loan through the following means.
1. Compare the lenders
While getting two-wheeler insurance is easy when you have a good credit history, it is slightly more difficult with a poor credit track record. However, many lenders today have shifted their focus from credit scores to other things, such as the stability, income source and the social media profiles of the loan applicant. Therefore, you need to find a lender who considers these aspects along with the credit score, if you want to get a two-wheeler loan.
2. Negotiate with lender
A credit score is a representation of the past repayment history of loans. However, since then your economic condition may have improved greatly. You need to convince your two-wheeler lender of this fact so that the company understands that you will not default on making the payments on time this time around.
3. Pay the majority in down payments
Even with a poor credit history, if you manage to pay a large portion of the cost of the bike or scooter through the down payment, you would need to borrow less. The lender may think twice while lending bigger sums to a person with bad credit, but it will not reject the application if the loan amount is nominal. Use two-wheeler loan EMI calculator while determining how much you can afford to down payment. The two-wheeler loan calculator online will also help you ensure that you do not end up with huge monthly payments.
4. Get a co-applicant
A loan where you are the sole applicant may be rejected based on the low credit scores. However, if you apply for the loan along with another person, the banks may not be so fast in rejecting the application. In fact, if the co-applicant has a good credit history, it is almost guaranteed that you will be lent the necessary sum.
However, throughout the entire procedure of the application, make sure you use the two-wheeler loan calculator to determine how much you are comfortable borrowing.
No comments:
Post a Comment