What to Do When Your Loan Application Is Rejected

Submitting a loan application is a common thing for those who need quick funds to be disbursed in a short time. In addition to the funds obtained can be quickly disbursed, the process is easy and straightforward is also a reason for people applying for loans. Moreover, there are many financial institutions that offer convenience for customers applying for online loans.

Unfortunately, not all loan applications can be approved. Of course, this is confusing, even more so if financial institutions do not give reasons why their loans have been turned down.

Now, are you one of those who have been refused loans? Don’t worry, here are a few reasons why your loan application was declined, and how to deal with it!

 

Incomplete Document Requirements

loan Document Requirements

One of the reasons why someone’s loan application was rejected was because the documents submitted were incomplete in accordance with the requirements. Although the loan application process is easy and hassle-free, completing documents is crucial so that your loan can be approved.

Make sure that the document you submitted is complete, along with the validity period. When you apply for a loan online, make sure that you upload scanned documents with clear and clear images.

 

Ineligible Credit History

Credit History

If you apply for a loan, surely the financial institution will check your credit history through the BI Checking process. If you previously have a history of bad credit, or still have outstanding debt, of course this has the potential to cause your online loan application to be rejected.

Of course, before applying for another loan, you must pay off your credit first. You can bring proof that your credit has been paid in full if you have paid off your credit.

 

Obstructed by Maximum Loan Limit

Obstructed by Maximum Loan Limit

In connection with the previous point, if your previous expenditure or loan is too large, this has the potential to cause your loan application to be rejected. Especially if you apply for a loan more than the credit limit set by the financial institution. This is because the financial institution you are aiming at doubts your ability to pay and avoids the risk of bad credit.

It is better to submit a limit according to what has been set by a financial institution. In addition, the ideal debt ratio is a maximum of 30% of your monthly income.

These are some of the reasons why your loan application was declined. Hopefully the above review can help you to avoid these things, yes. Also make sure to always submit an online loan application that is registered with OJK as your financial solution.

How To Recognize Illegal Online Loans?

The rapid development of technology provides convenience for people who need loans. As we know, Financial Technology (Fintech) or commonly known as online loans has been “booming” for the past few years in Indonesia. The presence of this online loan, certainly makes it easier for people who need emergency funds for various needs. Call it the daily needs, business capital, health costs, education, and much more. Not everyone is able to manage their income or salary so well that they cannot meet their needs.

To date, more than 150 online loans have been registered and have licenses from the Financial Services Authority (OJK). Online loans that are officially registered, monitored and licensed by OJK certainly do not need to worry. However, at this time there have been many illegal online loans circulating which are very unsettling to the public because they are considered to be “online moneylenders”. Instead of helping the public by providing emergency loans, these illegal online loans instead burden people who are entangled with choking interest. Many illegal online loan cases have ended up unlucky. Therefore, this time Good Lenders Credit will return to the Fintech Literacy article with the title “How to Distinguish Legal & Illegal Fintech?” Come on, read this article until it runs out.

The Characteristics of Illegal Online Loans:

1. Unregistered, Supervised & OJK Licensed

The simplest way you can do to check whether your online loan is legal / illegal is to check the list of online loans that are registered, monitored and licensed by the OJK. OJK will update this list regularly, therefore, you can check the list here!

 

2. Invalid Company Address & Identity

invalid Company Address

The second way you can detect illegal online loans is to check whether the address & identity of the online loan is valid or not. Legal online loans registered with OJK certainly have a valid office address and are very easy to find on Google’s search engine. You can also find the company’s identity easily. However, illegal online loans will not do that, Good Lenders Credit. They will use a fake address or even use another online loan address to make it look “real”. They will also not include telephone numbers for complaint services. 

 

3. Delay Interest & Penalty Does Not Make Sense

loan problem

The third point you should understand is that illegal online loans offer unreasonable interest & late fees. Hmmm, illegal online loans are synonymous with the term “online moneylender”, Good Lenders Credit. They also do not limit the nominal interest and penalties that will be charged to you. Doesn’t it help, it actually suffocates it? Things like this, which makes people afraid of online loans. In fact, official and legal online loans will certainly limit the interest and late fees, the interest offered is not exorbitant.

 

4. Loan Terms Too Easy

Loan Terms Too Easy

Legal and legal online loans will be selective enough to determine which clients can be given loans. But in contrast, illegal online loans will provide very easy terms and conditions and can even disburse funds in a very short time.

 

5. Information Not Transparent

loan Information Not Transparent

The next way you can identify illegal online loans is to look at the information provided by the loan. Do they provide transparent information such as interest rates, fees to be paid, to late fees? Legal online loans will certainly provide that information transparently through applications, websites, even to the social media they have.

 

6. Billing Methods That Do Not Fit the Code of Ethics

billing methods

Various cases of illegal online loans circulating in Indonesia are often related to ways to collect online loans that are not in accordance with the code of ethics. Threats, defamation, are often the most common problems. This certainly will not be done by online loans that are legal and officially registered with OJK. So, always be aware!

So here are some ways you can recognize illegal online loans. Now, to distinguish illegal and legal online loans, the following are the characteristics of online loans that are legally and officially registered with the OJK:

  • Registered, supervised and licensed by the Financial Services Authority (OJK)
  • Have a valid and clear company address
  • Company identity is easy to find
  • There is a complaint service number & customer service that can help
  • Information related to transparent loans
  • There is a maximum percentage of interest and late fees
  • Strict customer selection
  • Loan collection
  • Social media is clear, and verified

Already understand, Good Lenders Credit? How easy can you do to recognize illegal online loans? For those of you who are still confused about finding the right legal online loan for your needs, you can choose Good Lenders Credit online loans that have been registered and supervised by the OJK. Good Lenders Credit offers loans of up to 8 million dollars that can be repaid up to 6 months with an interest of 0.1% per day.

How to recognize a reliable loan repurchase organization?

Buying back credit is an important decision that should not be overlooked because a lot of money is at stake. The market for buying back credit has however become very prosperous and many banks offer very attractive offers. So how do you find the most reliable organization and what are the pitfalls to avoid?

 

How to choose a bank?

bank

There are very many financial organizations offering loan repurchase today, whether it be an online bank or a traditional financial institute. You must first know that the person is not obliged to perform the consolidation in his current bank, he can see elsewhere. Before choosing an institution, it must first consult 3 or 4 banks to see the most attractive offers. Internet comparators can be of great help. However, it should be noted that the banks offering the best rates are not the most reliable. You have to see the details before you rush in and calculate the total cost of credit.

 

Take into account other costs

money loans

The majority of people limit themselves to studying the monthly payment and the rate. However, it should be noted that there are other costs. First there are the compulsory costs such as administrative costs, death, invalidity and temporary incapacity for work insurance. There are also early redemption allowances. Then there are the optional fees which may or may not be subject to the lender depending on the situation. The lender may be subject to unemployment insurance, brokerage fees or guarantee fees. These fees represent only a small percentage of the total cost of borrowing, however, the figure may be significant.

 

Avoid those who offer variable rates

loan rate

Currently, the bank may initially offer a very attractive rate to attract the customer. But a variable rate subscription gives him the right to increase the rate at any time. In addition, there are many banks that increase the rate while keeping the repayment tenure. When the person calculates the total loan rate, they may notice a big difference. To find the right bank, therefore, the person can consult the opinion of their loved ones and benefit from their experiences. It may also call on a broker, as available on the site, the latter’s remuneration must be taken into account.

Filling your overdraft with a loan

When your account is in the red, you may be tempted to take out a loan to raise your balance and avoid harassment from your banker. Or even, yes, it has been seen, it is HIM who offers you this credit.

Before signing up, here are 4 reasons why taking credit for your overdraft is a bad idea.

 

Filling your overdraft with a credit: the wrong plan

Filling your overdraft with a credit: the wrong plan

1) You will not know why you are exposed

There may be several reasons for the overdraft.

You may be overdrawn because you had a large expense that was not budgeted for: a car repair, an emergency purchase of household appliances, or even a drop in income – for example sick leave.

Another reason for the overdraft is improper management. Your expenses are more important than your income and mathematically, it no longer does at the end of the month.

If you settle this overdraft without knowing why it happened, the situation can repeat itself after a few months.

 

2) An additional charge on your budget

money loan

If you are overdrawn due to excessively high charges, adding a monthly payment will not help, quite the contrary! You will have even less margin and risk being exposed again very quickly. Unfortunately, I see budgets that are already over-indebted and are struggling to be balanced, so if another loan is added to it, it becomes unlivable.

 

3) Less money available for your projects

An additional monthly loan is less money available for your projects or for your savings. We reach point 2 there. Remember: there is never magic in a budget.

 

4) Bad habits

debt loan

Taking a credit to report an overdraft is a bit like waiting to win the lottery to raise your account. If your discovery comes from a lack of management, you do not change the bottom of the problem and will continue to spend more than you earn … miscalculation.

So okay, taking a loan to make up for your overdraft, you understand, is a bad idea. But how do I do then? (if I hear you behind your screen!)

 

How to fill your discovery

loan history

The first thing to do is to accurately estimate the amount of the overdraft (ouch, it can hurt).

To do this, take your last account statement. If you received your salary at the end of the month, you deduct it from your bank balance on the last day of the month.

If you have a deferred debit card, it would also be ideal to deduct all expenses for the current month from your bank balance. The deferred debit card is a cash facility, it can be super practical, but you have to know how to handle it…

Now that you have the amount of your current overdraft, if it is too large, you divide it into monthly payments that go into your budget, and reduce your future expenses by the same amount.

And the most important step, the one that should limit the breakage in the future, and make you take the situation back in hand, well it is to optimize the management of your budget! Learn how to do your accounts what;)

Do you want to become a budget pro, no more stress for your money in 10 days? I present to you “My Zen Budget in 10 days”, an email challenge that teaches you how to put money back in its place: a tool for your projects. 10 days to tame your budget without being afraid, take stock of your relationship with money and finally learn to manage better.

Need a Fast Money Loan? Find the Answer Here!

Needs for the needs that must be met certainly more and more over time. Even personal needs that you have to meet sometimes still feel heavy, even more so, when you already have dependents that you have to pay for. Just mention your wife, children, parents, brothers or sisters who also need financial support from you. Because of the many costs that must be incurred, not a few people who find it difficult to fulfill.

If you have a steady income, or income from business, you should be able to finance your living needs and your dependents. However, this will be difficult when you cannot manage finances properly. It could, the income you get every month, runs out quickly, not even until the end of the month. Hayoo confess, there are still many of you who often feel that the monthly salary is just passing through?

 

Obligation to pay certain costs

money loan

When the money runs out, but you still have an obligation to pay certain costs, maybe the first thing that comes to mind is borrowing money. Many people feel overwhelmed when they run out of money, and immediately seek a fast loan so that their needs can be met as soon as possible. You might think of borrowing from relatives first. However, there are things you need to keep in mind when expecting a fast loan from a relative, Lite Lend Credit. Loans from relatives can be limited, they can bill you at any time, and if you cannot afford it, your relationship with relatives can be bad.

The next choice when you want a fast money loan is to go to a bank. What you need to know too is that a loan at a bank takes time and process, and the possibility of rejection is high. Not everyone can succeed in borrowing at the bank, especially if you need a fast cash loan, for example within one day or several hours in the future, of course it will be difficult to fulfill by borrowing from a bank.

 

Loan shark

Loan shark

Finally, maybe you could think of borrowing from a loan shark because there is no other choice. However, you are certainly already familiar right, with how the system of borrowing and charging from a moneylender? Don’t let your original purpose of borrowing help to make ends meet, so complicate yourself just because you need a quick loan.

The development of technology makes it easy for humans to carry out various activities and transactions, including when they need fast money loans. Now, the presence of Fintech or online money lending applications is increasingly mushrooming, certainly makes it easier for people who need fast money loans to meet their needs. One of them is Lite Lend Credit! Loan application online with low interest, easy, and fast. Why does it have to be Lite Lend Credit? Come on, consider the following reasons!

 

The Loan Process at Lite Lend Credit is Very Easy & Fast  

credit loan

You certainly want a fast cash loan that can immediately meet all your needs, not complicated, does not have to follow a process that is difficult and also time consuming. At Lite Lend Credit, you won’t find it difficult when you need a fast loan! Only by downloading the Lite Lend Credit application via the Google Play Store, filling in data, selecting products, and waiting for verification, the funds you need can be disbursed in a short time, Lite Lend Credit. You can apply for a loan anywhere and anytime through the Lite Lend Credit application when you need a fast cash loan.

 

0.1% interest per day!  

loan interest

When deciding to borrow money through banks, or moneylenders, of course there is interest they charge the borrower. Similar to Lite Lend Credit, when you choose to borrow money on Lite Lend Credit, there is interest that you must pay each month. However, don’t worry, the interest offered by Lite Lend Credit is low and competitive, you know. Starting from 0.1% per day! Guaranteed, the flowers won’t make you suffer!

 

Can be repaid up to 6 months  

Can be repaid up to 6 months & nbsp;

Need to return money within one week? Two weeks? Or one month? You will definitely find it difficult to repay loans quickly in a very short time. On Lite Lend Credit, you can repay your loan for up to 6 months with a maximum loan of 8 million dollars!

Well, this is one of the most important points for you to pay attention, Lite Lend Credit. When you need a fast money loan, you may become less careful because you are in a hurry to want fast money at hand, without thinking. If you ultimately choose to borrow through an online loan application, make sure the loan is registered and supervised by the FSA so that you avoid fraud and billing that is not in accordance with the code of ethics, yes! Take it easy, Lite Lend Credit has been registered and supervised by the FSA, really. No need to worry anymore when you need a fast money loan, borrowing at Lite Lend Credit is guaranteed safe!

 

Cashback Bonus Every Pay Installment  

money loan

This last point is very beneficial for borrowers at Lite Lend Credit, which you might not be able to get if you borrow elsewhere. Lite Lend Credit gives cashback each time you pay the installments before the due date until your installments are due, you know! Cashback that you can get up to 3%, you know. Interesting, right?

Although it seems very easy, you must remain vigilant about illegal online money lending fraud applications, Lite Lend Credit! There are still many online money lending applications that are not registered and supervised by the OJK. In fact, this is very important for borrowers. So, it’s good you think carefully when needing a fast money loan, and find out in advance about the place of the fast money loan that you are aiming for. Instead of being confused about looking for a safe and no-hassle fast cash loan, go ahead, download the Lite Lend Credit app and submit a loan of up to 8 million dollars now!

Credit and borrower insurance: what you need to know before buying

After a year 2015 marked by the recovery of the real estate market, the professionals of the sector count on the maintenance of a high level of sales, around 800,000 goods in 2016.

The real estate market is on the rise! First reason: historically low interest rates continue to fall and reached 2.09% in February. Also, the decrease in prices per square meter of 1.6% on average last year, the downward revision of notary fees or the strengthening of the Zero Rate Loan (PTZ) since January, contribute to boost sales. In a very favorable context for investment, a little reminder is needed on the few rules to know concerning obtaining credit and taking out loan insurance.

 

Prepare your mortgage loan application well.

mortgage loan application well.

If you plan to embark on a real estate investment, you must first assess your budget. Indeed, the amount of your contribution, the price of the property you want to buy or the other credits that you have in progress will have an impact on your loan. For example, it is important to keep in mind that the total amount of the monthly payments on your credits cannot exceed 33% of your income.

Certain fees may also increase the amount of loan required. If you go for example through a real estate agent rather than through an individual, you will have to pay a commission which can be up to 8% of the purchase price. Similarly, notaries’ fees may represent 7 to 8% of the purchase value in the old and up to 3% in the new.

The bank will integrate all these variables into the calculation of the loan it will grant you. A word of advice: favor loans with fixed rates or capped variable rates which will protect you against possible increases in interest rates.

 

Loan insurance: prefer individual contracts.

Loan insurance: prefer individual contracts.

Once the credit request has been accepted, your bank will require borrower insurance to finalize the transaction. Its purpose is simple: this guarantee will cover the reimbursement of the remaining credit in the event of death or loss of employment.

Very often, your banking establishment will offer to subscribe to its group contract. However, it is better to opt for individual insurance, which is cheaper and more personalized. The Lagarde law indeed authorizes the delegation of insurance, which means that a borrower can choose a contract different from that proposed by his bank.

One of the tips for finding affordable benefits is to go to online insurance comparators where you can access different offers from the cheapest to the most expensive. Note, however, that the contract chosen must be validated by your bank and that the guarantees must be of a level similar to those initially proposed.

 

Succeeding in your real estate investment

mortgage loan

It’s reducing the financial burden of certain compulsory costs simply requires a little anticipation and organization. In addition, do not forget that to support you in the purchase of a property, you can take advantage of a certain number of fiscal measures and devices, including the Pinel Device and the 0 Rate Loan.

Credits and divorce: what happens to your credits?

45% of marriages end in divorce. Infidelity, lack of confidence, possessive jealousy, financial problems, voyeurism of in-laws are just a few explanations for this figure. Leaving the person you have lived with for many years can be painful. Added to this pain is to let the loved one, the anxiety of financial matters. What happens to your credits?

 

The 4 forms of divorce

Before talking about finance, do you know the different types of divorce?

  • Divorce by mutual consent: more and more widespread, this so-called amicable divorce asks the spouses to agree on all the effects of the divorce.
  • Divorce for fault: If a marital fault was committed during your marriage by you or your spouse, you can request a divorce for fault. If there has been a fault, the spouse at fault may be required to pay damages.
  • Divorce for definitive deterioration of the marital bond: used when there has been no more common life for more than two years between the spouses.
  • Divorce upon acceptance of the principle of marriage breakdown: You and your spouse agree to divorce but you cannot find a consensus on the effects of the divorce, opt for this divorce.

 

The 3 major matrimonial regimes

The 3 major matrimonial regimes

There are also three major matrimonial regimes (mode of operation established by the marriage contract):

  • The regime of separation of property outright: property acquired before and during the marriage reverts to its owner. For purchases in common, they are divided according to the contributions of each.
  • The regime of participation in acquisitions: it is the same thing as the regime of the separation of goods, except that the goods are calculated according to their difference in value between the time of purchase and the separation to determine the increase in wealth of the couple before dividing.
  • The universal community regime: as its name suggests, all property is considered common, even that acquired before marriage. In the event of separation, each has half of the common heritage.

From your matrimonial property regime, you should know what will happen to your property and that of your spouse. Will you share them fairly? Does everyone leave with the furniture they bought? Ask your notary and your lawyer to put things flat.

 

Divorce, and the credits in all that?

divorce debt

You get a divorce but what happens to the credits in the process of being repaid?

  • Common debts : Financing your child studies, paying the rent for your house, paying off your consumer credit for the purchase of your swimming pool are common debts. They report to the maintenance of your household or allow you to finance the education of your children. In this case, they are to be reimbursed by the two former spouses.
  • Personal debts : You organized a trip with friends during your marriage but your spouse did not accompany you? It is a personal debt. All debts which do not concern either household or education are personal debts. Here, you are the only person to repay this credit.
  • The principle of solidarity : All household debts contracted by only one of the spouses are the responsibility of both spouses, unless they are deemed excessive. So even if your partner has obtained a loan to finance your child education when you were not yet divorced, you must help them pay the debt.

 

What then are the solutions for your credits in the event of divorce?

What then are the solutions for your credits in the event of divorce?

  • You divorce by mutual consent, you still get along with your former partner, then it will be easier for you to continue to pay together . Finish paying off all of the “household debts” both.
  • Repay your credits in advance so that you no longer have to pay credits with your former spouse. For this, either you have the money necessary following an unexpected inflow of money (inheritance, premium, …), or you go through another personal loan to pay the total amount you owe.
  • Do you prefer to keep your house? Make a deal with your ex and buy his share .
  • If you feel that you are going to have too many credits to manage, consider grouping credits. All your credits will be combined into a single lower monthly payment which will allow you to have cash and be able to finance a project. Do the calculation yourself easily on our credit pooling simulators.

The main difficulty in answering the question “I am divorcing, what is going on for the credits in progress? Comes from the matrimonial regime. It is he who will define if you must help your former partner to repay his debts or if you have no obligation to do so. Your notary or lawyer can help and inform you. Be careful not to take out credit in connection with education or your household until your divorce is not pronounced otherwise you will cause your ex in his repayment.

The advantages of buying back special owner credits

In the event of a difficult financial situation, the repurchase of owner loans is a solution allowing the owners to reduce their monthly payments to increase their room for maneuver in front of their expenses. What is the repurchase of credits for owners? A financial solution that combines the owner’s credit (s) with a single credit with lower monthly payments.

 

What you need to know about buying back special owner credits?

credit loans

An owner who would have cash flow problems, or who would have several credits in the process of being reimbursed, or even an owner who would like to carry out work can decide to restructure his credits: his current loan (s) are bought back, or grouped together, and the owner no longer has to pay the x monthly payments corresponding to the x current credits, but only one monthly payment corresponding to the new credit grouping together all the old loans in progress.

We are talking about repurchase of owner credits, or grouping of owner credits, or even restructuring of owner credits.

 

The advantages of buying back special owner credits are as follows:

debt loans

  • When you choose to buy a homeowner credit, you have only one contact: the financial advisor of the homeowner loan buyout company you have contacted. You no longer need to “juggle” between the different contacts of your different current credits.
  • With a buyout of owner credits, you pay only one monthly payment per month. Thus, managing your credits is much simpler and a single repayment each month is enough.
  • When subscribing to your credit combination, you can negotiate to pay a single monthly payment that is lower than the sum of the monthly payments that you paid before for your various outstanding loans. It is actually possible to reduce the amount of the monthly repayment of owner loans
  • In fact, thanks to the decrease in the amount of the monthly payment, your purchasing power increases: your available income after repayment of the owner credit repurchase and after payment of your monthly charges are higher than before the credit repurchase…

All the advantages of buying back credit for homeowners should not make us forget that it is essential to manage your budget well, especially since if buying back homeowners credit reduces the monthly payments, there are also disadvantages to take into account. account. For example, the repayment of credit is made over a longer period, thus generating a higher cost of credit.