Lenders – providing both payday loans and installment loans – are increasingly tempting their clients with very high amounts of liabilities. The more popular lending companies become, the more visible the race between lenders is. A short-term loan is not several hundred, but even several thousand available even with the first free payday loan. More information at http://www.lwlarsenphoto.com/list-of-the-top-ways-to-save-cash/
However, not everyone will be able to use them – the obstacles that prevent us from obtaining a high loan amount are few and it is worth remembering.
If we consider the most popular part of the loan market
We will notice that the amounts of liabilities stop around USD 15,000. Such an amount can be found, among others, at Lopesa, Mikulr or Vewa Meda. Of course, we will also find higher amounts, but these will be special-purpose or special loans: mortgages, car collateral or guarantees.
It can be said that payday loans lenders keep pace with installment loans. Kuki offers as much as USD 10,000, Vivus – 7,500, and Loan Plus – USD 8,000. It is true that only with the second loan, but even the amount of 3000 thousand is impressive.
High earnings are not everything
We used to base our calculations regarding creditworthiness only on the amount of our earnings, possibly reduced by fixed financial liabilities. The algorithm calculating the risk of loan default is, however, more complicated. Although the amount of income is the basis for calculations, other parameters should also be taken into account:
Type of employment. It is true that non-bank institutions accept all income and we can easily get a loan for a work contract or a maintenance loan, but in this case we will be given a lower amount. Stable employment under a contract of employment (preferably for an indefinite period) is more likely that the loan will be granted for the amount we applied for.
Having children. Married but childless children are more likely to receive a higher loan. This is not only lower monthly expenses, but also greater stability of the household budget and less probability that there will be a sudden financial need preventing repayment of the loan. Moreover, children are additional persons in the household who do not generate any income.
Real estate and car ownership
Questions on this subject very often appear in the loan application. At first glance, you can think that the permanent legal status of the apartment or house and the possession of the vehicle determine the applicant’s high financial status. The main reason for these questions, however, is whether the borrower will be able to cover his debts if the loan is not repaid, even if it would be done by a bailiff. Such a person will be offered a loan more willingly and for a higher amount.
Borrower’s age . The age limit set by the lender is one thing, but a separate issue is how specific age translates into creditworthiness. Lenders are willing to give a larger loan to young people who are not at the beginning of their career path.
Of course, let’s not forget about other parameters – no arrears in the BIK register or debts visible in the BIG databases. Even if we contact a lender without a BIK loan, we must reckon with the fact that the loan amount may be smaller.
Regular customers will borrow more
The fact that you can get a larger payday loan once again is obvious. Free payday pay is usually a much smaller amount. It is not always certain, however, that we can count on the highest amount for the second loan.
The lender usually takes the most confidence in his client after a few more loans. In this way, he can get to know the borrower’s payment culture and gain confidence that the loan will be repaid on time.