The world is arranged quite oddly: to get a loan, you need to have a good credit history, but how to get it if you don’t give a loan without history? The eternal story of what happened before - a chicken or an egg. It is unpleasant to refuse in such a situation, but it is quite real.
After all, often those who are most in need of a loan are denied credit because he did not need it before. Getting a loan is difficult, but not impossible. And it is better to start preparing for this procedure ahead of time, even before you need to contact the bank with a request for a loan. Here are six tips to get you started on this process and build your credit history from scratch.
Start from afar. Contact your bank to issue you a standard credit card with a small limit. Yes, this will not solve the main problem and will not cover the need for money, but it will help to stay afloat for a while and gain the confidence of the bank. Spend money wisely and be sure to repay the debt on time.
This will let the bank understand that you know how to handle money, do not spend it thoughtlessly, you can correctly dispose of funds and are endowed with a sufficient degree of responsibility. If you are a student and just reading this article out of curiosity, then you should consider getting a student card with a credit limit and using it for its intended purpose. The credit there will be very small, but you will make yourself a serious future.
The credit rating will reflect not only your personal history (loan debt, business troubles, litigation, and bankruptcy) but also the history of your immediate family. Therefore, if you are a businessman and a potential borrower of a bank, be sure to monitor not only the state of your account, but also the accounts of children, Pubg pc game, your spouse, and in some cases your parents' accounts.
When considering an application for a loan, the bank draws attention to many factors, but the most obvious answer to the question of whether you will repay the loan properly is the movement of funds in your account. A good job with regular payments (or a good job offer, which is confirmed by the provided employment contract) or a solid amount of savings will be a good argument for the lender.
Now many do not live where they are officially registered. There is nothing wrong with that, and the law does not prohibit free movement around the country.
However, if your registration address matches the actual place of residence, if you are present in various open databases, including the voter's list, then this is a signal to the bank that you are an honest person, you have nothing to fear and you will not leave suddenly in an unknown direction.
Often we apply for a loan using modern means of communication, we receive a response by e-mail, regular mail, by phone or via Internet banking. And if the answer is unsatisfactory - we give up or go to another bank with less pleasant conditions. But in vain! Never refuse personal communication with the bank manager. Seek individual advice. Take time for yourself! With a competent approach, you can agree with the bank. Remotely refusing is much easier than a person sitting right in front of you.
After all, remotely the manager deals only with bare facts, paper, and numbers. Personal communication gives you a chance to influence the final decision because here other levers are connected - appearance, manner of holding, power of persuasion.
In the absence of credit history, it is quite difficult to borrow a large amount of money. Be prepared for the fact that your basic request will be denied, and that you will have to be satisfied with much less convenient offers (more bid, less time, not the amount you would like to receive, etc.). Not quite a good proposal is much better than none at all.
Start with it. It will help take the first step in building a credit history. And in the future it will be much easier to solve such problems, having a positive lending experience.