Having a lower credit score does not mean you won't get approved for a personal loan. However, there are downsides.
The good news is there is no minimum credit score required for a personal loan but it may not work in your favor.
While banks are generally wary of lending money if you have a low credit score, the market is changing for loans.
New lenders in the market are giving money even to people with low credit scores so getting a loan isn't that hard.
Flexible loan providers who adapt their payment structure to your needs will offer a loan but with high interest.
Don't be disheartened if you have a low credit score. Once you get your loan, you can use it to improve your score.
Making regular payments on time and in full can help improve your credit status by demonstrating your reliability.
Consistent payments is a positive trend that will get reported and recorded on your credit file.
Paying back a personal loan is a great step towards credit improvement as payment history matters in your score.