Do I need collateral to get a bad credit loan?

Generally, it’s very difficult to get a bad credit loan without collateral. All lenders consider your credit history and credit score, before taking a decision. When you have bad credit, you can tip the scales in your favour by offering to submit collateral.

However, if you don’t have collateral to pledge, you can use other factors to work on your behalf. Showing proof of stable employment and a good income can get the lender to approve your loan application. However, remember that even if you’re sanctioned a bad credit loan with or without collateral, the loan terms may not be to your advantage. You are most likely to be charged with high interest rates, to reduce the risk borne by the lender.

This shows the crucial role a good credit score plays in your loan approval. If you’re looking to apply for a loan and think that your credit score could do with some help, CreditMantri can help you out. We guide you on how to improve your credit score in the most efficient way. Additionally, we also match you with the best loan offers based on your current credit score. Check your credit score for free to get started.