3 factors that could prevent you from obtaining a microcredit

Microcredits and fast loans give people the chance to almost automatically apply for a small amount of money, which they will then have to pay back in a shorter time than regular loans.

Great risk that applicants do not meet payments

Great risk that applicants do not meet payments

These credits usually have one of the highest usury rates in the market, and that is because there is a great risk that applicants do not meet payments. Despite that, the ease of obtaining them was what made them so popular and made them grow in a short time.

However, finance experts have mentioned that this year it will no longer be so easy to obtain one of these credits; the requirements have tightened, causing many of the applicants to be rejected. There are different reasons that can cause it, but these are three of the main ones:

1. Lack of payment capacity 

1. Lack of payment capacity 

If it is evidenced that your income is not enough to return the borrowed money, this will be an inconvenience to access a microcredit, as the entity is clear that it will not be able to pay it.

2. Over indebtedness 

credit loan

When much of your income is committed to paying loans, it means that you are overindebted. Experts advise that debts do not exceed 30%, since this way you can maintain a balance.

3. Have credits with other entities 

Falling into the carousel of loans is very easy. Borrow an entity to pay another, and so on, but sometimes even that is not enough to get out of debt and ends up involved with several entities and owing them all.

If you want to get a microcredit or fast loan, avoid these factors and be sure to request only an amount that you can repay and within an acceptable period.

Looking for a fast loan, but don’t know where to get it? Compare the options here.

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