I have no margin and I need a loan, what do I do?
Applying for a personal loan is a big financial step. Regardless of your margin, rate or loan amount, you will probably need to meet some general eligibility criteria to qualify. But every day more, the margin becomes one of the essential criteria in obtaining a loan. And if you want to borrow money without a margin, we have some suggestions.
How to get loan?
Every loan application is different, but many lenders want to make sure that some factors are checked before they offer you the money. These factors are income, employment, your credit score, the collateral for the loan, your assets, debt and expenses. However, for consigned loans, there is still the margin factor, which can hamper your borrowing.
Payroll margin: what is it?
Under current legislation, payroll loans, that is, loans that are deducted directly from the payroll, can not be more than 35% of the monthly income. Of this amount, 5% is for exclusive use in paycheck credit card, which leaves 30% reserved for other types of loans.
Put another way, you can only commit 30% of your salary with a paycheck loan and 5% of salary with a paycheck-deductible credit card.
Payroll loan for those who have no margin is possible?
If you have already exceeded your payroll loan margin, it is the first sign that something is wrong with your finances. You need to review your financial planning and budget to control your debts and avoid a snowball. A loan should be only an emergency measure only and only after all other possibilities have been exhausted.
Now, if you have negative or non-existent assignable margin, some suggestions can help you get a loan.
No margin loan and your rent
Almost every lender will require you to earn a steady income. This is to ensure that you have the ability to make the minimum monthly payments defined by your loan agreement. While some take any amount of income, larger loans may require you to make a minimum amount before you can apply. One of the ways to get a paycheck loan is to increase your income. So, consequently, you will also have an increase in the values that you can set aside for repayment of loans.
Getting a loan with no margin is difficult, and going above your margin can result in problems.
Employment to improve margin
This differs among lenders. If they have an employment requirement, it may be necessary to work full time to be considered. If you work part-time or work on your own, you will still have loan options, although they may be lower than those offered to people with traditional forms of employment. If you are unemployed, many lenders accept applicants who receive government benefits as a form of income but you still need to demonstrate that you can repay the loan during these benefits.
In the case of payroll loan, you can only use your fixed income source if you are a retiree, a pensioner, or a civil servant. So one way to improve the margin here is by having job promotions or by taking a job that has a higher salary. Increases or accumulations in pension payments, pensions and salaries can also increase your margins.
Credit history and credit portability
A good or excellent credit score with a solid history, such as one that does not take great damage to missed payments or loan defaults is the easiest way for lenders to know that you are a trusted candidate, especially if you are making a request in one Bank. Thus, you can repay your existing loans through debt consolidation so as to repay existing loans and clear the margin for obtaining new loans. However, it is important to remember that you will have to pay not only with installments of payroll loans but also with the installments of the consolidated loan.
When you apply for a secured loan, such as a car loan or a mortgage, you are providing collateral in the event of a default. When you apply for an unsecured loan, the one that does not have collateral attached, your credit score becomes the main deciding factor. Payroll is a type of secured loan, but you can get other unsecured loans with other types of collateral, which can give you the resources you need.
Have you any questions about how to get a loan with a negative margin? Leave comments your questions!