When applying for a loan or short-term cash loan, the applicant may receive an unmotivated refusal after the application is processed by the automatic system. The situation may repeat itself when sending an application for financial assistance to several microfinance organizations. In order to solve the problem and get a cash loan, you need to understand the reasons for the refusal. If an application is rejected, the service does not provide reasons why a negative decision was made. It is important for the borrower to know where to get a loan if money is denied everywhere.
Why are they refusing a loan?
The automatic verification system may make a negative decision based on the application of a reliable borrower. Knowing the possible reason for the refusal, a repetition of such a situation can be avoided.
Credit history
Since July 1, 2014, all information about the processing and repayment of loans by the borrower is automatically sent to the credit history bureau. The consent of the individual is not required for this. Thus, for each person who has used the services of credit institutions, a kind of financial dossier is formed, called a complete credit history (CHI). The year 2005 is taken as the starting point.
In addition to information about a citizen’s credit relations with organizations providing such services, the bureau receives information about bankruptcy, arrears in payment of utilities, fines and alimony.
When checking a person who has submitted an application for financial assistance, microfinance organizations pay attention to the applicant’s IPC.
The credit history is considered damaged even in the case of a single delay for a period of more than 30 days. This fact is often the reason for making a negative decision when applying for a cash loan. It should be noted that credit companies have their own interests when processing and issuing loans to persons with a damaged credit history. The ideal borrower is not very interesting to the bank, since it deprives him of the opportunity to earn additional income on interest and penalties.
Based on this, a potential borrower with an ideal credit history may also receive a refusal.
A reason for refusal may also be the client’s lack of credit history, which makes it difficult to analyze the degree of reliability of a given applicant.
Existing loan obligations and low wages
In the process of making a decision on issuing a short-term cash loan, the system analyzes the ratio of the official income of an individual and his expenses for repaying loans on a monthly basis. The amount of expenses for payments on loan obligations should not exceed 35-40% of wages. The calculation also takes into account the loan that the applicant applied for.
If you have several existing loan agreements, it makes sense to apply for loan refinancing rather than apply for additional borrowed funds.
Simultaneous contact with several banks
Bulk sending of questionnaires to different credit organizations makes sense when looking for a car loan or mortgage, as well as when looking for refinancing. Otherwise, it looks suspicious from the point of view of the reliability of the potential borrower.
Considering the high speed of processing applications, experts recommend refraining from mass mailing of applications, but acting in stages.
Specifying incorrect information when filling out an application
Deliberate distortion of information about existing loans or the amount of monthly income without documentary evidence is perceived by the bank's security service as an attempt to deceive. This may entail blacklisting unreliable clients who are guaranteed to be rejected when trying to take out a loan.
An accidental typo when specifying personal information will not entail such serious consequences, but will also serve as a reason for refusal.
In addition to all the above reasons, when checking, credit institution employees pay attention to:
- age of the potential borrower (25-50 years);
- education;
- presence of unpaid debts for housing and communal services, fines;
- frequent changes of place of work and profession (in terms of demand in the labor market and degree of risk);
- recent refusal to apply to another credit institution;
- number of dependents;
- having a criminal record;
- lack of military ID;
- absence of any property (car, apartment, house, land);
- indication in the application of a very small or huge loan amount;
- inconsistency of communication style or appearance with the established internal regulations of the credit institution.
Contacting several banking organizations at once or requesting a very large amount makes company employees think about serious financial problems. Based on this, the security service has doubts about the solvency of this client.
Important! As a rule, the main reason for refusal is a damaged credit history or the presence of debts on alimony, utility bills and writs of execution.
Large number of existing loans
Debt overload is, unfortunately, a global problem. If previously one loan was the norm, today citizens have 2-4 loans and several credit cards. Employees of a microfinance company understand that such a financial burden may negatively affect the repayment of a new loan.
According to the MFO policy, the client’s income should be enough to repay the debt. As a rule, financial companies are sure that only the income from loans exceeds, then providing a new loan is out of the question.
Where can I get a loan after being rejected by banks?
Companies providing short-term lending services to individuals use a simplified scheme for checking the solvency of applicants. A number of microfinance organizations use an individual approach to the consideration of received applications, and are ready to accommodate clients even with a damaged credit history. In addition, not all credit companies require documents confirming solvency from potential clients.
If you receive several unmotivated refusals from various organizations involved in lending to individuals, you can pay attention to companies that are loyal to potential borrowers. Their list includes various microfinance organizations.
- Money Man issues up to 80 thousand rubles for a period of up to 126 days based on passport data.
- Credit Plus provides financial assistance in the amount of 15 thousand rubles for a period of up to 30 days without income certificates.
- The web loan issues an amount of up to 30 thousand rubles to a bank card for a period of up to 30 days.
- The borrower provides financial assistance in the amount of up to 30 thousand rubles for a period of up to one calendar year.
- Urgent money offers an amount of up to 100 thousand rubles for a period of up to six months.
- Turboloan issues up to 50 thousand rubles on a passport for a period of up to 168 days.
Interest on the use of funds is calculated on an individual basis. Their size depends on the lending conditions in force in a given company, the term and period of the loan.
Important! Typically, upon first application, microfinance organizations offer a preferential interest system.
When choosing a company to apply for a short-term loan, you need to carefully read the requirements put forward to the borrower. A number of companies directly indicate that they are ready to cooperate with individuals who have a damaged credit history.
Little-known microfinance organizations that issue microloans without refusal
MCCs, which have recently appeared on the Russian financial market, are trying their best to earn a good reputation, so they attract consumers with convenient conditions for cooperation: low interest rates, issuing mini-loans without refusals, new promotions and bonuses.
Borrow Simply
If you still fail to get a loan from well-known companies, you can try your luck at other financial institutions. MFO “Occupy Simply” is one of them. At 2.17% per day, here you can be approved for a loan of up to 15,000 rubles. You can only submit an application for a microloan on the MFO website; such issues cannot be resolved over the phone.
Mobifinance
Mobifinance is a company that entered the Russian financial market in 2015. A microloan can only be applied for via the Internet. The available amount is no more than 15 thousand rubles, and the maximum period of use is 30 days. The company issues funds to almost all residents of Russia with the exception of those who live in the Republic of Crimea, North Ossetia, Ingushetia, Dagestan and the Stavropol Territory.
Note: we specifically looked for microfinance organizations where you can get a mini-loan without refusals, but you can also find institutions that issue microloans without interest, only on a card or in cash.
How to get a loan without refusal?
Experts in finance and personal lending provide a number of useful recommendations on how to avoid being blacklisted by credit institutions and create conditions for approval of an application for a cash loan:
- You should not send more than 3 application forms at the same time. If they are rejected, other companies will automatically refuse.
- Having less than three months of work experience in one place, there is no point in sending a questionnaire indicating your salary. The work experience in the last position must be more than three months.
- If you have a second job, it is recommended to inform the credit company employee about it. In the case of unofficial employment, it is recommended to first agree with the employer about a possible call from the microfinance organization in order to confirm your income.
- It is not recommended to apply using fake documents and salary certificates.
- If you have numerous overdue loans, a criminal record, unpaid fines and debts for housing and communal services, you need to look for microfinance organizations in the list of companies that issue loans up to 50 thousand rubles.
- When planning to apply for a cash loan, its size must be calculated so that the total amount of monthly payments does not exceed 40% of income.
- Providing additional documentation (information about existing property, salary certificates) increases the chances of approval of the request.
If possible, it is recommended to agree with the head of the company, colleagues and friends about a positive reference if they receive a call from a credit institution.
You can get a loan without refusal provided:
- providing correct information about yourself and your place of work;
- confirmation of monthly income in an amount capable of ensuring regular payments of obligations.
Advantages of MFOs
MCCs are trying to survive in the market and offer consumers various services. If you compare MFOs with banks, there are quite a lot of advantages.
- Methods for depositing funds. An urgent loan can be taken out in any way: in cash at the office or by courier at home, using a bank card or electronic wallets, through Zolotaya Korona, Svyaznoy issuing points or terminals. Banks mostly have a card.
- Ease of obtaining microloans. IFC rarely refuses a loan to anyone, so pensioners, students and the unemployed can get money. What can we say about the registration procedure: go to the website, submit an application and wait for a decision in a convenient place. Did the MFO issue loans without refusal? So it's time to take the money.
- Raising interest rates. Yes, for many applicants the interest rate is high, but this is usually for a first loan. The more often the client uses the service, the lower the rate. Sometimes you can get a loan at 0% (first loan, for example).
To ensure that MFOs do not refuse you a loan, follow all the conditions specified in the agreement, and then you can rest assured: for any MFO you will be a long-awaited client!
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How to fix your credit history?
Today, some companies that issue short-term loans to the population offer an additional service. It allows you to quickly correct a client’s bad credit history. The service is called “Correction of Credit History”.
The list of microfinance organizations ready to provide such a service includes Zaimer, E-cabbage, Money Man and other companies.
The scheme for correcting the client’s CI involves several step-by-step actions:
- Upon initial application, the applicant borrows an amount of up to 1 thousand and successfully repays the debt within the terms specified in the loan agreement.
- The size of the second loan will be 2 thousand rubles for a shorter period.
- The third step will be a loan of 3 thousand rubles.
Information about successful and timely repayment of credit debts will have a positive effect on your credit history. The borrower can count on receiving a cash loan on conditions common to all clients.
Take a loan using the Internet
Runet is a place where everything really is. From cartoons for your children to cash loans. Moreover, there are services specializing in p2p lending, where borrowers find lenders and vice versa.
But if this scheme does not suit you for some reason, then you can count on loans of up to a thousand dollars using electronic wallets , having previously confirmed your passport details and solvency. The percentage is large, ranging from 10-15% per month. But this is still better than being left without any funds at all.
Do you need guarantees that the transaction will be carried out without fraud? It’s simple, use the services of guarantor services, of which there are also plenty on the Internet. But here, too, you should trust only trusted individuals and services with a long-standing reputation.
Where can I get money if my loan is refused everywhere?
As an affordable alternative, it makes sense to consider other ways to raise funds:
- Going to a pawnshop where you can borrow money against valuables.
- Go to a car pawnshop, where you can borrow funds as collateral for a car or a title for a car.
- Find a private investor who will agree to lend money for a certain period at a certain percentage. Such monetary relations are fixed by agreement in simple written form.
- Look for a company that provides online loan services. Such companies issue small amounts for a short period, but at the same time limit themselves to checking the accuracy of the specified passport data and do not request the credit history of potential borrowers.
You can also contact Sovcombank for. The scheme for improving credit reputation is similar to similar programs from microfinance organizations. If the debt on three small loans is repaid on time, the bank will issue the required amount on equal terms with other borrowers.
Refinancing of overdue microloans, their restructuring and extension
Any debt must be repaid - this is understandable. But, unfortunately, it is not always possible to repay the loan on time. What can be done in this situation? Regardless of how you took out a microloan, without a credit history or have passed a strict background check, you can take advantage of some of the services that MCC offers.
- Prolongation. This is a paid service, which must be signed up a few days before the end of the contract.
- Refinancing. Thanks to refinancing, you can combine several loans into one and get more favorable conditions for cooperation.
- Loan restructuring allows you to completely rewrite the agreement.
