How to secure your personal loan instantly
There are basically two kinds of consumers for lenders, those who have credit history and those who don’t. The debtors who have credit history can be rated with good, bad or average credit rating. But the borrowers who have had no credit history are often placed at the same levels with bad credit debtor. The credit ratings of debtors are the main source for evaluating the financial potential of the debtors. If the debtors have a good credit rating then the lenders are willing to grant them loans with lower rates of interest. This happens because the lenders are then at lower risks. With poor credit rating debtors are given loans of higher interest rates because the lenders are at higher risks here. But with the no credit history debtors, it becomes difficult for the lenders to evaluate their potential for repaying debts.
Loan options for no credit rating debtors
The loan options for the no credit rating debtors are restricted. Though they have no poor records of non repayment, they also don’t have a good record of timely payment of bills. As a result debtors usually provide these lenders with higher interest loans. The loans which are provided to such borrowers also require collateral because there are greater risks involved. Unsecured loans are also limited for such borrowers.
Instant solutions for personal loans
There are some easy solutions through which the debtors with no credit rating can open their credit accounts. These include opening a bank account and getting a credit card. A couple of small purchases and their timely repayment also ensure that the debtor’s credit reports would start ticking. Timely payments would lead to good credit scores and easy availability of getting loans also. Personal loans are the easiest forms of loans to avail. Though they can be of higher interest rates they don’t require collateral.
Facts on credit rating
Credit rating is a very vital factor for getting different kinds of financial tools and aids. Hence it is important that a good credit record should be maintained. Having no credit history is almost equal to having poor credit history. Hence it is suggested that the credit record should have some history and repayment records. This will help to get loans at easier interest rates and often without the need of collateral. Credit cards and opening bank accounts are the easiest ways of starting your credit history.