The borrower’s credit history is considered to be the most important indicator of the transaction reliability. Having a good credit score, it is always easier for a borrower to count on making a deal with a bank for a loan.
- 1 What is a “640-699” credit score?
- 2 What loan can I get with a “640-699” credit score?
- 3 How to get a personal loan with a “640-699” credit score?
- 4 How much loan can I get with a “640-699” credit score?
- 5 Where can I get a personal loan with “640-699” credit score?
- 6 How to improve a “640-699”credit score?
What is a “640-699” credit score?
Fair credit score allows slight deviations in the terms of payments that you quickly close. Also it includes one-time non-payments that occurred due to the circumstances beyond the control of the client. At the same time, you can confirm them with documents (certificates of the approved sample). As a rule, this group receives loans easily and without further questions. But try to avoid future delays in payments.
What loan can I get with a “640-699” credit score?
A personal loan can be obtained by an individual who meets the established banking requirements. Depending on the bank, these requirements may vary.
Loan in a microfinance organization
Microfinance organizations provide urgent loans. And, often, they are not interested in the credit history of the borrower. Why are microfinance companies at such a risk?
This can be explained by such factors:
1. In a microfinance company, you can quickly get a loan for a small amount. And only if this loan is repaid on time, in subsequent times, you can count on larger loans in this particular organization.
2. Interest on loans often exceeds reasonable limits. These companies get 2-3% per day, which results in a high interest rate for the year (more than 100-200%). Meanwhile, a personal loan can be issued at a bank at 20-40% per annum.
To receive money from a microfinance company, you must:
- fill out an online form on the website of the selected organization;
- wait for a call from the company manager;
- come to the office to sign an agreement and receive money.
Some companies practice signing documents online, for which a special digital code is sent to the client on a mobile phone. And then the money is transferred to the bank card of the borrower, the number of which he/she indicates when filling out the form.
Banks offer more favorable credit conditions. But if the credit history is already damaged, then they need guarantees. That is, you need to offer an apartment or a car, for example, as collateral.
In this case, the borrower will be motivated to repay the new loan without delay. Otherwise, the bank has every right to sell the property to repay the problem loan. Moreover, the sale is often carried out at reduced prices.
Get a credit card
Banks rarely check a client’s credit history who wants to get a credit card. It is issued even without the income-confirming documents. However, the credit limit in this case will be small.
Contact an intermediary
A loan broker helps to arrange a loan for those who have previously had delays. But the services of an intermediary cost money – about 10-20% of the loan amount. The broker will help to get a large amount on credit, which cannot be borrowed from a microfinance organization or a bank for a credit card.
All conditions of interaction with a broker or private lender are desirable to fix on paper, in a special contract, it is even better to notarize it. Remember that you should not transfer any prepayments for inquiries or a consultation before you receive your promised loan on your hands or card.
How to get a personal loan with a “640-699” credit score?
1. The process of obtaining a loan to an individual in a bank begins with filing an application – online or in one of the branches.
2. After a preliminary consultation, a bank employee invites the applicant to a meeting in one of the bank branches.
3. During this meeting, the applicant fills out a form and a bank considers the documents, and he/she can immediately get approval.
4. The application will be reviewed and approved within a maximum of one business day (usually from 15 minutes to two hours).
I. The decision to obtain a personal loan is a responsible decision
A personal loan is a loan provided by a bank for the purchase of goods (services) for personal, domestic and other non-production needs.
Obtaining a loan implies the obligation to repay the principal amount of the debt (the amount that was received from the bank) within the time period established by the loan agreement, as well as pay interest on the loan.
Often the terms of a loan agreement also stipulate the need for other payments related to obtaining and repaying a loan in favor of the bank (fees for considering documents for obtaining a loan, opening and maintaining a bank account, making money transfers, etc.), as well as the benefit of third parties (payments related to insurance contracts, collateral, transfer of funds through post offices or other banks, etc.).
If any payments stipulated by the loan agreement are not made or are not made on time and / or in full, the bank may demand a penalty (fine). The bank right to make such a claim is usually stated in the loan agreement.
Before making a decision on obtaining a personal loan, assess your needs for obtaining it, as well as the possibilities for its timely repayment.
II. Read all the information about the loan and the conditions of its service (repayment) carefully
In order to make a decision on obtaining a personal loan, you should obtain from the bank employees comprehensive information on the conditions under which lending is carried out, including without exception all payments related to obtaining a loan and its servicing (repayment).
Remember! Your right to receive timely (before concluding a loan agreement), necessary and reliable information is fixed by law. Such information includes: loan size, repayment schedule, total loan cost in percent per annum.
Carefully read the terms of the loan. Pay attention to the references contained in them to the tariffs for the implementation of bank services. Request and study information about these tariffs.
You can make the best decision after studying the offers of several banks issuing personal loans. The information received will allow you to compare offers on personal loans of different banks.
III. Read the loan agreement and other documents carefully
Do not rush to sign documents. Before signing a loan agreement, study it carefully. For these purposes, if possible, take the loan agreement home, study its conditions more carefully, establishing your obligations, make sure that the loan agreement does not contain conditions that you are not aware of or the meaning of which is not clear to you.
If any lending conditions are not clear to you, ask the bank staff for clarification and relevant documents, clarify your questions. If you have not received the necessary clarification, it is better to postpone the decision on obtaining a loan.
When leaving an application for a loan at the bank, please note that such an application may be your offer to conclude a loan agreement on the conditions provided for by this application. Acceptance by the bank of this application will mean the conclusion of a loan agreement without additional notification to you of this fact.
Having carefully studied the loan agreement, once again weigh the pros and cons of obtaining a loan, calmly evaluate your chances of timely repayment of the loan.
IV. Signing a loan agreement is the most crucial stage
Remember! By signing a loan agreement (statement of offer), you agree to all its terms and obligations to fulfill them, including returning the amount of the principal debt and paying all the due payments for improper performance of which the bank will be entitled to file a claim to court.
Sign a loan agreement (other bank documents) only if you are sure that all its conditions are clear to you, you know exactly what payments and when you need to make, and you are convinced that you can do it.
How much loan can I get with a “640-699” credit score?
Loan amounts are established by the terms of the structure that issues them.
Where can I get a personal loan with “640-699” credit score?
Very often, you can count on approval from those banking organizations in which you have already served or continue to do so now. Special privileges, as a rule, are used by salary clients, former borrowers who have successfully repaid past debt, as well as depositors.
If you belong to one of these categories, we recommend that you contact these companies. In addition, you will be offered a reduced percentage.
How to improve a “640-699”credit score?
1. Open a deposit
The very first way is to demonstrate to the bank that you are a solvent borrower and that you have assets. If you have the opportunity to save at least small amounts, use it. When applying for a loan, the bank will definitely take into account the deposit and regular investments and your chances will increase.
2. Get a loan for a small amount
If you need a large amount of money, but the bank has not approved your application, try to take a loan for smaller amounts and pay it on time. After several loans repaid in a small amount on time, the bank will necessarily approve a loan for a larger amount. If your credit history contains a repaid loan with arrears and two bona fide loans, your credit score will improve significantly and you can expect to receive a loan for the desired amount.
3. Take a microloan
Microcredit companies also have requirements for the borrower, but often they are not as high as in banks, so you may well be approved for a small loan. It happens that a person who wants to improve the credit history applies for a microloan for 3-5-7 days and repays it literally in a couple of hours, in order to avoid interest on the loan. You can do this, but we advise you to pay the debt not on the day of the loan, but pay it off exactly on time so that your effort to change your credit history is not so obvious. For example, if you took a microloan for three days, repay it exactly three days later, on the specified loan repayment date. By law, companies involved in the processing of micro-loans transfer your data to the Credit Bureau, so a couple of loans paid on time can also lead to positive changes in the credit history and affect the approval of the application by the bank for a more impressive amount.
Correcting a credit score is a bit of a painstaking process, but the result always justifies all the difficulties, because an improved credit history allows fruitful cooperation with credit organizations.
Also, our website provides detailed information about “570-639” and “700-749” credit scores. Webmoneyloans is always ready to help you.
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