What to do in case of credit refused everywhere when you have to provide for a need in your daily life? Where to find a loan company that lends easily? These are all questions to which this article will attempt to provide answers.
Basics of credit principles
Before agreeing to grant you a loan for such or such amount, your bank or your financial organization will analyze your repayment capacity. By accepting a loan, a banking institution agrees to take the risk of not being reimbursed. By examining your financial situation from every angle, she will try to determine and minimize this risk.
In parallel, your bank must prevent you from falling into over-indebtedness, it is the law. You will not be able to borrow more than a third of your income (sometimes a little more), because you must have enough to live decently on a daily basis. Your creditor will not be able to lend you more than what you are able to pay as monthly payments. The total amount he will grant you will therefore depend on these.
Then, before granting financing, your lender will consult the black list (or “negative section”) of the Central Credit Center for Individuals, directly managed by the Good Finance by knowing if you are not bank card or prohibited.
The goal for the one who is going to lend you money is to protect themselves, but also to avoid you any over-indebtedness otherwise you would not be able to repay it. In fact, if you are late in paying off your loan, you risk penalties and your financial burden will increase.
You will also run the risk of over-indebtedness if you do not manage to pay in full the predefined monthly payments because this would increase your arrears and in the end, you will end up with a big debt without counting on the fact that you will find yourself prohibited banking and that hurts the heart.
Whether or not to accept a loan will also depend on several other criteria:
- your age – see my article on credit for senior,
- your charges (reason why your bank will inquire about your marital status and the number of children for whom you are still responsible, etc.),
- your spending in everyday life basically are you a gambler or not,
- the stability and value of your various sources of income (for example, an employee on an open-ended contract will generally be considered reliable, while there is more risk in lending to an unemployed person.)
- whether or not there is a guarantee, contribution or personal savings (evidence of the ability to manage a budget well and make concessions),
- your possible outstanding loans and debts,
- the history of your financial situation (bankruptcy history, difficulties in repaying a previous loan, etc.).
The analysis of these parameters will allow the financial institution of your choice to offer you a loan that is just as suitable for your conditions as it is for its own.
Finally, once you have obtained your loan, within two days at the latest, your banker will have transmitted your identification details and the characteristics of your loan to the Central Credit Office.
Why can you be denied credit?
A credit organization can refuse you a loan according to the different criteria developed above. First, a bank will necessarily reject your request if you are on the black list of the Good Finance.
But how can we get there?
This happens if you are late in paying your monthly payments and your banker is obliged to report you to the Good Finance. It will be the same in case of default, that is to say if you fail to meet your obligations three months after the due date.
It also happens that a bank refuses to grant a loan because of the amount requested compared to the income. If these are too low while the credit is important, the person could fall into the trap of over-indebtedness, and this, even more if he has not managed to generate savings.
You may also not get your credit if you are under 25 or unemployed. People who are overdrawn for most of the year are also very unlikely to qualify for a loan. Furthermore, according to the banks, the amount of your loan and its purpose, you cannot hope for financing if you do not have real estate or assets to present as collateral.
What to do in the event of a credit being refused?
If you are subject to the restrictions mentioned above, how can you make your credit application always or easily accepted?
- Balance all of your outstanding credits.
- If you are or have been blacklisted, be patient before renewing your loan request. Know that even after the regularization of your situation, your contact details are still kept for a year. In addition, if you do not settle your debts during the year, you will remain on the black list for ten years after the date of the first default and therefore you will have no chance of claiming a new loan.
If you want to get credit anyway, ask yourself if it’s really worth it. If yes :
- Research everything that could serve as guarantees and / or guarantees with your creditor. Find for example a person who would vouch for your profile, provided of course that it is someone stable and reliable, is able to repay your bank (and that you are sure not to put in the sea**). If you own real estate (house, land, etc.), offer it as a guarantee, but be careful that it is not the subject of a mortgage. Also take into account the risk that in the event of default, the credit institution will take your property.
- If your usual financial institution rejects your credit, you can consider turning to another bank.
- If your loan seems a little too high, agree not to be ambitious and to lower the amount requested.
- Finally, you can consider alternative means, such as turning to members of your family or acquaintances who would then serve you as creditors, in this case we are talking about a loan between individuals.
The final word
Making a loan always accepted requires concessions in its financial management. Taking a prepaid credit card can help, because with a predefined amount, spending can be better managed.
If your credit has been accepted and then refused when you think you should borrow for a good cause, don’t give up. If you have the possibility of further supporting your file, do not hesitate. Take the necessary deposits. Otherwise, take the time to save money and therefore put off your projects. Backing up to jump better can always be beneficial.