You need money? You can take a loan or a bank loan or a non-bank loan. However, when the amount borrowed is too low, the problem arises where to get extra money. Can we borrow them again in this situation?
Non-bank loans and those offered by banks are granted on specified terms. We have to meet them to receive money. The requirements may be more or less restrictive. Most often there are more requirements when it comes to higher sums. When we borrow small amounts, our creditworthiness does not have to be very high – we will take a loan even with a minimum salary.
Creditworthiness and the amount and number of loans and credits
Most often, to borrow money, we must have a certain creditworthiness. This term refers to our ability to repay the loan taken on time, along with additional costs – interest, commission and other fees.
It is from our creditworthiness depends on how much money we will be able to borrow. The better we earn and the smaller the financial burden we have, the greater our creditworthiness. Banks check it in several ways. With lower amounts, we fill out a special statement in which we indicate our income and expenses. For higher amounts, we must already provide documents confirming our income, for example a certificate of employment, the last PIT, an account statement.
In addition, the loan company will check our creditworthiness and other databases. If in the past we have repaid our loans and loans in a timely manner, then we build our positive credit history, which testifies to us well as a potential customer. However, when we had difficulties in repaying some installments, we can even meet with a refusal to grant a loan or a loan.
When can we borrow more?
Therefore, when we have good credit standing, we can borrow a larger sum – both in one and in several different loans and loans in the same bank or in several different ones. So we can have a mortgage and some cash loans.
Banks each time check the creditworthiness of their clients and issue a decision on granting or not granting a loan. When, according to the bank, our ability is too low, we can refuse or the bank will offer us a lower amount.
Several non – bank loans at the same time
However, the case looks different when it comes to non-bank loans. Many non-bank companies offering loans such as payday loans and installment loans reserve that you can only take one loan at a time. Therefore, when we apply for another loan, we will receive a refusal.
However, we can take a few non-bank loans in several different loan companies. Of course, we must then calculate whether we will be able to afford the repayment of such a commitment. In addition, information about your loan will be recorded, so it can also affect our creditworthiness.