Applying for a personal loan or using a credit card to shop is not a strange thing, but you must make sure the personal loan is safe. This means you have to apply the tips to make personal loan installments not stuck, because bad loans mean spending more money. Plus, personal loans that are stuck will bring long-term impact. For example, if you are known as a bad borrower, your name will be recorded in the system at the bank making it difficult for you to apply for another loan or use a similar service in the future.
Bad credit usually occurs when the amount of personal loans for bad credit loan bills you have to pay accumulates in each period because you do not pay the installments as stipulated, for example due to late or unable to pay. If that happens, there will be various impacts such as foreclosure of the asset being used as collateral, and the inclusion of your name as an “less than ideal customer.” If you borrow, you must make sure that the loan will not become bad credit.
Tips to Make Sure Personal Loans Secure
Loans such as home mortgages, unsecured loans and low interest personal loans so on are helpful, but can also be a huge burden if payments are not made on a regular basis. There is no harm in applying for a loan or using a credit card, but you must make sure that the credit is not stuck in the middle of the road.
Here are some tips to avoid bad credit:
Make sure the loan does not exceed the ability.
This seems obvious, but what exactly does “not exceed the ability”? It depends on your income, but in general, when applying for a personal loans online approval loan or making a purchase with a credit card, make sure the installment amount you must pay each month does not exceed 30 percent of your income in that month. Thus, the installment payment will not be too heavy, and you will easily manage the money.
Avoid loans / credits for consumer goods.
Although credit cards and loan facilities in banks can be used for anything, it should not be used to buy consumer goods. Use a credit card only for transactions that are really urgent when you do not have the cash (for example have to suddenly buy plane tickets in the middle of the night). Before applying for a loan at the bank, make sure the loan is only for something useful, such as a dream home loan (which is also a form of property investment) or for unsecured bad credit loans business capital.
Make installment payments a priority.
When you already have the obligation to pay the mortgage, make sure it is a priority in monthly financing. The installment is debt, and the debt should be a priority, especially if it is the installment of bank loan payments whose amount will continue to rise. Do not be lazy or procrastinate with repayments and immediately do so once you have money. If you receive income or income slightly larger than unsecured personal loans bad credit usual, add a small amount of the repayments you have to pay.
With these tips, you can be sure that the loan will pay off on time and will not become bad credit.
Solution In case of Bad Credit
What if the bad credit already occurred? Do not avoid your obligations and contact the bank to show good faith. Although you still have to pay, the bank will usually offer some bad credit loans online credit restructuring solutions, to facilitate the process of repayment payments. Options restructuring usually there are 3 kinds, namely:
Rescheduling. The bank gives the borrower an option to increase the repayment period, for example from one year to three years, to make it easier.
Changes in terms of the small personal loans loan. The Bank provides compensation in the form of changes in lending terms, such as payment terms, amount of installments, time of payment, and so forth.
Credit rearrangement. The bank changed the loan policy to make it easier for the borrower to repay, for example changing the percentage of interest charged on the loan.
Although the bank has some solutions for good-faith borrowers with bad credit, your name will still be included in the records of the Debtor Information System, so the bank will rethink to give you a new loan in the future. If you have to borrow money, make sure the personal loan is secure so that the loan installment is not stuck and becomes a new financial burden.