Bad Credit? 5 Ways to Get Approved for a Personal Loan



Last Updated 02 January, 2015

Your credit score is one of the various metrics used by banks and lending institutions when they assess your loan application. A credit score can be used as a gauge by banks to tell whether a loan applicant is credit-worthy so if your credit score is low, your bank can decline your loan application, or— if they do decide to accept your loan application, charge you a higher interest rate for the loan.

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A bank’s decision to approve or turn down a loan application is not based solely on your credit score. There are other factors that have an impact on their decision including their own risk exposure level and their own loan application policies. With that being said, it’s entirely possible to get approved for a personal loan in Hong Kong even if you have a bad credit score. Just but be prepared to be charged a higher interest on the loan.

Looking to get a better deal on personal loan even if you have bad credit? Here are a few tips to remember when you apply for a loan.

1. Get a cosigner or guarantor

A cosigner or guarantor on a personal loan minimises the risk for the bank as it gives them another recourse should the loan turn bad. With the lower risk, your profile will look better in the eyes of the bank and you can increase your chances of getting a favourable interest rate and terms on your personal loan.

2. Compare loan providers

The loan market in Hong Kong is quite competitive so if you do get declined at one bank, you can apply at another bank. Check out your options at our personal loan comparison page.

3. Lower the loan amount

From a bank’s perspective, a lower loan amount means less risk that they’ll lose a lot of money. Review your financial needs and find out how low you can go with the loan amount you wish to borrow.

4. Apply for a loan with a bank that you’ve had a long relationship with

It’s about trust. If you’ve had your money saved up at one bank for a long time now, that bank will have a better understanding of your financial history. Plus, “relationship banking” has been a buzzword in the industry for some time now so you might as well see how committed your bank is to keeping your business.

5. Fix your credit score

If you still haven’t gotten a good deal on personal loans with the first four tips, you might as well take steps to fix your credit score now and apply for a personal loan at a later time once you’ve improved your credit score.

Start by getting a copy of your credit report and see which items are bringing down your score. Things like missed utility bills can show up on your credit report so always be punctual with your bills payment. Also, be responsible with your credit card use as late payments also show up on your credit report.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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