For many young people getting a first loan in their life is a challenge, so you have to be prepared for it.
Before we move on to specific proposals, I would like to briefly describe the biggest problem – Scoring!. Credit history has a great impact on scoring. Due to the fact that a young person does not have one, the bank will be very reluctant to grant a loan.
Recoil on scoring
If there is a young age, short work experience and employment based on a mandate / business contract, then we have a recipe for so-called “Recoil on scoring.” It is a situation in which the system rated the client so poorly that he would not offer him any form of credit. And the circle is starting to close …
“If the bank does not want to give me a loan, how can I make a credit history so that I can be / be more reliable next time?” This is usually the question asked by irritated customers.
Therefore, I would like to provide some information that will help a young person get their first loan in their life.
We should apply for the first loan in our parent bank, i.e. the one in which the salary is received. The bank looks much better at its customers than at street customers. For this we should choose the appropriate bank, whose target is youth entering adulthood. Often, the choice of a bank is treated neglected by clients “I will take anything, because all the banks will be the same”.
Not true! We should not also suggest the distance to the branch, because let’s arrange – how often do we visit a bank branch? RARE! The more we are able to do over the Internet, the less we will appear in the outlet, so the fact that you can go to our outlet in “slippers” should not determine the choice of this bank.
More and more people are experimenting with various types of payday loans. The topic of payday loans is a topic for a separate article, which is why I will not explore it here. It is worth remembering, however, that when making a decision to grant a loan, an analyst at our parent bank always has a preview of the account history.
If there are entries for taking payday loans (even if they have already been paid off), they may result in rejection of the application, as payday loans are a premise with a higher risk that the customer will be insolvent. It’s good to remember not to shoot yourself in the knee out of curiosity.
CAN BE INSTALLED?
Taking a installment loan is a very good idea to create a credit history. Banks servicing the majority of large home appliances stores look more favorably at a customer who comes for a specific product than simply picks up the money. However, with this way of creating a credit history you also can not overdo it. It will be much easier to apply for a loan for the proverbial dryer (goods up to USD 1,000) than the latest 55 inch TV for USD 5,000.
Getting the first loan in your life is not as difficult as many people might think, but it’s good to be aware of the rules that govern the banking market. This knowledge should protect the client from unnecessary nerves when the loan is needed “for yesterday”.