No, it is not possible to get small business loans without a credit score check being checked by the banks. Almost all banks check the credit score. They consider it as a benchmark for your future financial discipline and credit worthiness.
You can try and apply with your bank for the below loans –
- Pre-approved Personal Loan – Although a personal loan also needs a credit score check, sometimes the bank may offer it as part of an offer. Do check with your bank if you are eligible for a pre-approved personal loan. Since there is no restriction on the usage of the personal loan, it can be used for business purposes too.
- Apply for a gold loan – Lenders do not check the credit score for approving a gold loan. A gold loan requires a gold article as collateral. Anyone with a gold article can apply for this loan. It can be used for business purposes too.
Improve your Credit Score
- Pay your bills/dues on time – Maintaining a good payment history is a great way to exhibit financial discipline. This habit can eventually bring your credit score up.
- Credit Utilization Ratio – The credit Utilization ratio depicts how much of the sanctioned amount of credit you are using. It is recommended to keep the credit score below 30% to maintain a good credit score.
- Check your credit report – You must check your credit report periodically and report any discrepancies if there are.
- Avoid too many loan applications – Avoid applying for a loan too many times in a short period of time as it suggests that you have a lot of obligations to fulfil.