How to Get a Personal Loan with a Low Credit Score – Tips from FixMyScore

Struggling with a low credit score and in need of financial support? Learning how to get a personal loan with a low credit score is crucial for millions of Indians who face this challenge every day. At FixMyScore, we understand that credit score issues can feel overwhelming, but they don’t have to block your path to financial stability.

This guide will provide actionable tips to secure financing despite credit challenges and strengthen your credit profile for future opportunities.

1. Understand What a “Low Credit Score” Means

In India, credit scores range from 300 to 900. Typically:

• 750–900: Excellent (loan approval almost guaranteed)
  
• 700–749: Good (high approval chances with favorable terms)
  
• 650–699: Fair (moderate approval chances)
  
• 600–649: Poor (limited options, higher interest rates)
  
• Below 600: Very Poor (significant challenges, but not impossible)
  

Even if your score falls into the “poor” or “very poor” range, it is still possible to get approved, especially if you take the right steps.

2. Prove Your Income is Stable and Sufficient

Lenders care less about past mistakes and more about whether you can repay consistently. Strengthen your application by showing:

• Salary slips
• Bank statements
• Income tax returns
  

Proving a steady income can make a huge difference when you’re figuring out how to get a personal loan with a low credit score.

3. Partner with a Co-Applicant or Guarantor

Adding a creditworthy co-applicant (such as a spouse, parent, or family member) increases approval chances significantly. Lenders consider the combined creditworthiness, making it easier to secure approval even if your score is low.

4. Opt for a Smaller Loan or Offer Collateral

Instead of applying for a large loan upfront, try:

• Smaller Loan Amounts: Repaying a smaller loan builds trust with the lender.

Secured Personal Loans: Use collateral (fixed deposits, gold, or property) to reduce lender risk.

This approach is one of the most effective answers to how to get a personal loan with a low credit score. 

5. Fix Errors in Your Credit Report

A small error, like a wrongly reported late payment, can pull your score down. Regularly check your credit report, dispute inaccuracies, and ensure corrections are made. This not only improves your score but also signals responsibility to lenders.

Recommended Read: How to Dispute Credit Inquiries Like a Pro

6. Keep Your Debt-to-Income and Credit Utilisation Low

A low debt-to-income ratio shows you’re not financially overstretched. Similarly, aim to keep credit card utilization below 30% to gradually improve your credit profile.

7. Explore Alternative Lending Platforms

If traditional banks reject your application, try:

• NBFCs (Non-Banking Financial Companies): More flexible with approvals
• Digital Lending Platforms: Use alternative data to assess creditworthiness
• Peer-to-Peer Lending: Connect directly with individual lenders
  

These options are often more open to borrowers researching how to get a personal loan with a low credit score.

Final Takeaway

Securing a personal loan with a low credit score is possible—with the right plan. By proving financial reliability, exploring flexible lenders, and repairing your credit, you can achieve success.

At FixMyScore, our AI-powered credit score repair services provide personalized improvement strategies and transparent progress tracking to help you reach your financial goals.

Why Choose FixMyScore?

• AI-driven analysis of your unique credit situation
• Personalized improvement strategies tailored to your profile
• Proven results with transparent score tracking
• Affordable, reliable plans
  

Whether you want to secure a loan today or prepare for better opportunities tomorrow, FixMyScore gives you the tools to succeed.