Low Credit Score Personal Loans

Luckily, a few money lenders, such as Ozzie Loans, do not base their decision entirely on your credit score. They take other factors into consideration before determining your creditworthiness. This means that even if you have a bad credit score, you still stand a chance to qualify for low credit score personal loans.

Factors that affect your credit score

Because your credit score is an important element in how much money you can receive in the form of cash loans online or how fast your loan application is approved, it is important to understand some of the things that may affect its status. 

Your payment history 

Your payment history is somewhat a summary of how you deal with financial obligations. Most money lenders have a close look at this issue because it is one of the best ways to establish whether or not a borrower will repay the money they receive in the form of cash today.

Your credit score considers if you have paid all your bills on time. Examples of bills include electricity, rent and other loans. If you are late in paying, how long did it take before you finally made the payments? That is why you should pay your bills as soon as possible even if you are late in doing so. Your frequency of missed or late payments can also have a negative im[pact on your overall credit score.

Credit usage 

Your credit score takes into account your behaviour with regard to credit. If you regularly use up your credit, the result may have a negative impact on your overall score. However, if your credit usage is relatively reasonable, chances are that your score is likely to get a big boost. In most cases, a quick change in your credit utilisation can easily change your credit score within a few days.

Length of credit history 

The amount of time you have held a credit account can have an impact on your overall credit score. Longer credit history is likely to give a clear picture of your financial behaviour, which can help increase your credit score. If you only opened a credit account recently, chances are that it has not yet had a huge impact on your credit score.

New credit accounts 

The number of new credit accounts you open can influence your credit score and ultimately affect your chances of qualifying for low credit score personal loans. If you have opened many new credit accounts, the impact may not be positive on your score. The key is to try and minimise the number of new credit accounts you open so that you strike a balance between being a safe customer and a risky one.

Credit mix 

In this case, your credit score considers the variety of credit accounts that are available to you. Examples include credit cards, store accounts, instalment loans and mortgages. It is worth noting that this forms a fraction of the considerations, and it may therefore be pointless for you to try and open different accounts just to have a credit mix.

Are low credit score personal loans right for you?

Low credit score personal loans are a great way for you to get fast cash, especially when dealing with emergencies. These loans can also be the ideal solution for anyone that wants to retain a good credit score. A debt consolidation loan can help you meet your financial obligations and avoid worsening your already bad credit score. 

And if you think of it, low credit score personal loans can also be a great way to save on cash, especially if you are taking out the loan to acquire a service or product at an extremely cheap rate due to a promotion or flash sale.

Which bank is the best for low credit score personal loans?

While there are quite a number of banks or financial institutions that may be willing to provide low credit score personal loans, few can compare to Ozzie Loans. This particular institution allows its clients to download software and install it on the device before registering.

Once registration is complete, a customer can go ahead and submit a loan application for review. The institution will run a background check within minutes of submission of the application and send feedback to the client within just a few minutes. In most instances, you can expect to receive approval and money sent to your account that same day. These loans are unsecured, meaning you don’t have to put up anything as collateral.

Is a low credit score personal loan risky?

A low credit score personal loan is not risky as long as you know how to handle your financial affairs. It is worth pointing out that Ozzie Loans helps you plan out the way you will repay your online loans by scheduling repayments to coincide with the dates you receive your income. This means you can rest assured that repayment will go on as smoothly as possible.