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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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There has always been an emphasis laid on the importance of maintaining a good credit score. Rightly so, it is an extremely important factor considered during financial lending. Banks and financial institutions, not just in India, but around the world closely evaluate the credit report before offering different types of credit facilities. The reason behind this is that banks consider individuals with a good credit score to be much more reliable with their debt repayment. Thus, the lower the credit score, the lesser the chance of a given funding being approved.
If your credit report comprises of a bad score and you are in need of funding, then you may be in a major dilemma. However, there are other ways that you can use to obtain immediate funding:
Turn to close ones for lending – Who better than your close ones to understand the difficulties that you are facing in terms of finances. Thus, the first course of action would be to try and get financial help from your relatives and friends.
Fetch through your savings – If you have savings in the form of fixed deposits, then it can help you avail a credit card. Against the FD receipt, you can make payments as you would with your credit card. Making regular payments can also help you improve your credit score. This option is great as it helps you not just get funding, but also positively impacts your credit report.
Sell unwanted assets – There may be some assets that you possess but do not need at this point in time. You may also have some gold ornaments or other valuable items that can be helpful in rescuing you from the present crunch that you are facing. These assets can be sold in exchange for some quickly available funds.
Property mortgage loan – Do you own a land or property? Well, a mortgage loan against property can be a great option for you. With a loan against property, you pledge your property asset to the bank or lender and are granted a loan in exchange for the same. This kind of loan lets you enjoy a lower rate of interest as it is a secured loan – the property acts as the collateral.
The above mentioned funding options can indeed bring you the much-required funding. However, it is absolutely essential that you begin working towards improving your credit score. This can be done through timely bill payments, making smaller credit payments, using a credit card balance transfer and more.
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