You Are Refused A Loan – What To Do Then?
Online lending in the United States is becoming more and more popular annually, you can now take out a loan online within 15-30 minutes without leaving your home or from anywhere where there is an access to the Internet.
The online loans market began to develop actively in the USA about 10 years ago, when the first microfinance organizations (MFOs) began to appear, quickly filling the niche of short-term microcredit market. Now it is not difficult to get a loan online without refusal if you have an ID of the United States, an identification code, a bank card and a mobile phone. Many MFOs give the first loan at a reduced rate, you can get a loan online without calls and scans – as you can see, MFOs lend to their customers on very loyal terms. Many ordinary citizens living from paycheck to paycheck are increasingly giving preference to short-term lending, where you can take out a loan with a bad credit history, without a certificate of income and guarantors.
Refused a bank loan, what to do?
To apply for a bank loan, it is mandatory to prepare a package of documents, including an income certificate for the last 6 months. Only officially employed persons can receive such a certificate. If the borrower receives an inofficial salary, he will not provide a certificate of his income, since the employer will not be able to issue a document due to informal employment. In this case, even if a person receives a good salary, but cannot document it, will be not denied a bank loan.
Most likely, a borrower with a bad credit history will not receive a loan from a bank, because there are few banks ready to lend to problem customers who have previously had problems with timely repayment of loans. However, there may be nuances here, since the degree of credit history damage can be completely different. It’s one thing if the borrower is overdue on the loan and the bank had to go to court to get their money back, and it’s quite another thing if a person periodically made delays on individual payments, but in general repaid the loan on time. Most likely, in the second case, many banks will meet such a client halfway, but this is purely individual.
In some cases, banks require the presence of guarantors who undertake to repay the loan if the borrower does not do it himself. In this case, the borrower will have to look for one or two guarantors who would agree to risk signing the document. If the borrower does not find such people, the loan will be refused.
What to do in such situations when it was not possible to issue a bank loan, but money is needed? Here, payday lenders will come to the rescue, in which it is much easier and faster to get a loan.
How to apply for a payday loan?
To apply for a payday loan, you need to go to the official website of a microfinance organization or visit its office, if there is one nearby. The first option is more convenient, because it can be done at any time, on any day, without leaving home or from anywhere where there is a mobile connection.
In order to count on being approved for cash advance, it is mandatory to go through a simple registration procedure, during which you specify reliable personal data and confirm your phone number and email address. To apply for a loan, you will need an ID (sometimes it will even be enough to specify only the document number) and it may be required the second document – a driver’s license, millitary ID, etc.
When all the formalities for filling out the application form are completed, the user gets access to his personal account on the organization’s website, to which he needs to bind his bank card. The card must necessarily be of an American bank, must be issued to the borrower, it must have a small amount of funds, which is necessary for card verification. After successful verification of the bank card, the client can apply for a loan, in which to specify the amount and terms of the loan.
In most cases, such an application is considered automatically, and a decision is made on it within 15-30 minutes. In case of a positive decision (up to 90% or more of the submitted applications receive approval), the borrower remains to sign an electronic contract, after which the money will be credited to his bank card, which was previously linked to the client’s account.
Persons from socially unprotected groups of the population can also get payday loans: students, pensioners, the unemployed, etc. Many payday lenders issue the first loan at a reduced rate, which is very beneficial for the client, who will need to repay in fact only the loan amount.
The disadvantages of lending in MFIs include short loan terms (usually up to 30 days) and small amounts (usually up to $5,000). Also, a significant disadvantage is the high interest rate on subsequent loans (1%-2% per day), which the borrower will issue in the same lending service.
Tags: bank loan, cash advance, finance, payday loans, united states