People struggle to get a microcredit while it is actually affordable. A commission to get a payday loan is very low. It convinces the person to open a microcredit line.
Payday loans are not distributed to everyone. If a person does not provide sufficient guarantees to a financial organization he/she will not be able to get a microcredit.
What to Do
Microcredits are taken by people with moderate income. The average sum of such a credit is around 600 dollars. If one gets a refusal of credit issuance, he/she shouldn’t get into despair. Here are some solutions:
- Use a credit line at a regular bank. Every person can open a credit card. If one worked any time in life, he/she is eligible to get a credit. It will not be high but still can still satisfy some needs.
- Top up a credit score. One of the main reasons why credits are not issued is a poor credit score. This score shows how well a person manages to return debts. The lower a score, the worse. There are special types of bank cards that require a small prepayment. One can put even 30 dollars on it. A credit line will be opened to the same amount.
As a borrower uses credit finance, monthly payments will be deducted from a regular account. So, a borrower will pay the debt for sure. Information about such operation will be transferred to financial bureaus. A borrower will be assigned a high score.
- Provide more guarantees. It is possible a bank refused to pay a loan because of lack of sufficient guarantees. Financial institutions want to know if a borrower can pay back. To get approved for a microloan it is good to show an income statement or proprietorship documents. It will contribute to a positive decision by a financial institution.
- Apply for any job. If a person is employed, he/she will get at least a small loan. If one has an employment contract he/she can ask for microloan again.
- If a situation is catastrophic one can ask for social help. It is good to register at the list of unemployed. If one is US citizen, he/she can get a good state help. An amount is not big but enough.
These are some solutions to the problem. It is always possible to negotiate with any type of financial organization. If a person lacks certain documents, he/she can substitute them by the others. There are so many lenders that it is possible to apply for microloans until final success.