Short Term Loans Eligibility The Role of Credit Score

Created: 2017-07-21 00:00:00

Short Term Loans Eligibility The Role of Credit Score

Secured short term loans are not available for anyone who doesn't meet the credit score prerequisite. Credit score is indeed a prerequisite and not exactly a qualifying criterion in case of secured loans. While the credit score does get checked only after one applies, it is the first metric and the entire application is rejected regardless of other qualifying criteria. A person may have a great stable income and may also have adequate collateral but will fail to qualify for secured short term loans if the credit score is poor. Hence, it is important to understand the role of credit score as a prerequisite.

In case of unsecured short term loans, credit score is still important. Some lenders will not offer unsecured short term loans without checking the credit history and ensuring there is no red flag there. Some lenders will be willing to deal with bad credit applicants but will conduct a credit check to ensure the credit rating is not too poor. Some lenders don't conduct any credit check at all. Credit history or credit score doesn't matter in case of such unsecured short term loans.

You must choose a lender according to your credit score. If your credit history is very poor, then you need to find a lender that doesn't conduct any credit check. If it does, then chances are your application will be rejected. If your credit history is poor but still acceptable for a small loan then you can opt for a lender that conducts a credit check but doesn't give too much of importance to it. Unless your credit score is good, you should not apply for a loan from a lender that has stated its emphasis on credit history. Find lenders accordingly and apply for relevant loan amounts that you would actually qualify for.

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