Banks have cause for concern. The bad loans rate observed by them is systematically growing. It’s all because households are getting worse and worse on loan servicing.
The percentage of bad loans for the population in October has already reached 5%. debt. This means that every dollar borrowed by households does not return to the bank on time. The increase in bad credit from 4 to 5 percent. it took six months – according to October from JPMorgan Chase US Bank.
Bad credit loans guaranteed approval
On the other hand, entrepreneurs were positively surprised. In October, the proportion of accounts receivables from endangered companies fell. With over 10.52 percent. in September it fell to 10.49%. The value of loans with which enterprises have problems, and with them and banks, at the end of October amounted to USA 22.49 billion compared to USA 22.59 billion a month earlier.
The increase in non-performing receivables negatively affects banks’ results because it forces them to create a provision for unpaid loans. In the first three quarters of 2009, banks established over USA 8.2 billion of provisions for non-performing loans. At that time, the net profit of the entire sector amounted to USA 7 billion. Such a turn of events does not promise the best loan seekers. Banks will certainly be more diligently investigating the situation of those interested in borrowing money, as well as looking for ways to protect themselves against clients’ unreliability.
We made the decision to buy the dream apartment. We found the perfect property, we went to a financial advisor, we chose a bank whose offer meets our expectations. We have to wait for his decision. It turned out, however, that we do not meet the expectations of the bank, because our credit history leaves much to be desired. What to keep in mind when planning to incur a mortgage liability, advice advisers of the Notus Credit House.
Whether the bank will grant us a loan does not depend solely on our earnings, the type of contract we have with the employer or the value of the flat. The credit history, that is how we managed finances in the past, also influences the success of this process. The bank will check us in several independent databases – including Credit Information Bureau, Banking Register of Restricted Documents, the Economic Information Bureau or the Banking Register of Unreliable Customers. If we are at least in one of these databases, our chances for a loan will surely decrease or even drop to zero.
Banks check all potential customers before making a credit decision. Often, so-called scoring, i.e. the process of granting the borrower points based on his personal and property data. The following is taken into account profession, education, age and marital status, as well as bank accounts, payment cards and other loans. If these exist or, worse, are not repaid in a timely manner, the bank may refuse to finance our property.
Quick loans, bad credit
We must remember a few important principles, compliance with which will help us protect ourselves against bad credit history. First of all, we can not be late with the payment of installments. However, not paying one or two installments does not mean a negative decision when applying for another loan. Most banks will accept one-off delays, provided they do not exceed 60 days. If the amount of debt was low and the payment was delayed only one time, it should not cancel the chances for a new loan. However, if we pay each installment with a delay, even if it is a few days after the deadline, it worsens our situation and in the bank’s opinion we are unreliable customers.
People who do not pay their loans over 90 days may have big problems with getting a loan. In such a situation, the obligation is often directed to debt collection and this eliminates the chances of getting another loan or loan.
Banks assessing our application usually check our credit history from the last 2-3 years. This means that untimely repayment of the loan, eg 5 years ago, will be a much smaller problem than in the situation when installments were paid unpaid, eg, six months ago.
We often start to consider our finances only when we apply for a loan and there is a problem with obtaining it. Therefore, we must remember that before making a decision to go to a bank, we should minimize the chances of a negative response.
Best loans for bad credit
One of the most important criteria of the bank that determines our housing “to be or not to be” is creditworthiness. Unless we are able to go back five years and fix the mistakes consisting in the late repayment of past liabilities, we can increase our creditworthiness in a short time by regulating current loans, overdue bills or abandoning credit cards.
In making the decision to grant a loan, the Bank pays attention not only to our income but also to all, even short-term financial liabilities. They burden our home budget and may result in late repayment of mortgage loan installments. This applies in particular to any personal accounts with revolving lines or credit cards. Repayment and closing prior to submitting a request for commitments such as loans or credit cards increases our creditworthiness.
Another way to raise it is to add a person with income to the additional loan. For the co-borrower will be an additional guarantee for the timely repayment of installments for the bank. However, it is worth remembering that the bank will take into account not only the income of all borrowers, but also their liabilities. This means that in an extreme case, an additional co-borrower can even lower our creditworthiness.
When deciding on a loan, first of all we must analyze our financial past and determine the current creditworthiness. We should also check our history at the Credit Information Bureau. To do this, all you have to do is complete an application and send it to the General Bank USA office. It is only when we are sure that our credit history does not threaten the chance of a loan, it is worth going to the bank. However, if you still have any doubts, it is worth taking advantage of the free assistance of credit advisors.