Everyone loves wedding, but not every individual is ready with the enough money in order to celebrate his/her wedding on a grand scale. Moreover, when it comes to making your wedding grand and opulent, wedding loans are always at your rescue. However, in many banks you can avail the personal loan to cover all your wedding expenses as there are very few lenders who offer you such type of loan by the name of wedding loan.
Furthermore, if you fit into the eligibility criteria, lender can easily provide you with this loan without any hassle, and can celebrate your wedding in grand style. But, what will happen, if you are having a bad credit score? Will you be able to get the wedding loan? Well, these are the few questions that almost every individual think whose credit score is low. To get the answers of these questions, you need to read this article further.
How a bad credit score affects your chances of getting wedding loan
- Well, if you want to take wedding loan, it would be advisable to have a credit score of 750 or more out of 900. Maintaining a good score is highly important here as before offering you loans the lenders do check your credit score, and depending upon that can accept or reject your loan application. The higher score you maintain, the more chances are for you to avail the loan easily.
- When it comes to the first step in the loan process, the lenders cross check your credit score, and if they find it low, you loan application might be rejected.
- However, one thing that needs to be mentioned here is the fact that as these types of loans are unsecured and there is no need of security deposit, thus the lenders judge you on the basis of your credit score, and ensure that whether you would be able to fulfill your debt obligations or not.
- In fact, these days many lenders are available that specialize in offering all types of loans to such people whose credit score is low. If you are not getting a wedding loan from a reputed lender, you can move to them, and fulfill your purpose. But, it does not mean that you should not improve your score.
- It is always good and wise move to improve your credit score, before you apply for wedding loan as it helps in enhancing your profile and make you eligible in the future.
- The next thing that lenders will consider is your Credit Information Report (CIR), generally referred as credit report that access your track record of making the repayments. Whereas, if you have many late or skipped payments in your reports, or have one or two delinquent accounts, it is more like a warning to the lenders that you are not a responsible borrower in the past, and have failed to fulfill your previous loan obligation.
How to improve your bad credit score to become eligible for wedding loan
Well, the best and the most effective solution for those who are having bad credit score is to immediately take the necessary steps so as to improve their credit score. Yes, with the help of doing so, you can reach to a minimum score of 750, hence can improve your future chances of getting the loan easily. However, if experts are to be believed, it usually takes 2-12 months to become eligible for loan, depending upon how adversely your credit score is affected.
With a systematic approach, you can effectively improve your credit score, and can increase your future chances of getting any type of loan very easily. So, what are you waiting for! With a little bit of commitment and patience, the celebrations of your dream wedding are not away.