What 8 Factors Stand in the Way of Availing Instant Loans

Posted by Anna Johnson on October 3rd, 2017

Money is the testimony of several things if not everything out there in this vast and diversified mundane world. Your talks, and even the way you behave in the society are measured on the standards of your financial status. If it is impressive, obviously you are good, but in case, the things are ghastly opposite, you find yourself standing at the cornerstone of some dingy street.

Even your hardest try for the instant loans will not become your reality. Therefore, it becomes quite evident that you have clear idea on what problems or repercussions you are going to face with respect to instant loans.

Problem#1

Bad Credit History – You are eager to fall for the instant loans, but you have missed out on one point. You have a bad credit history, and your credit report is already marked red on many places. Your lender will not consider you as one of the prospective customers out here. And all your dreams to avail an instant loan waste away in seconds. Besides, if you are searching for a rented accommodation, the landlord will check your credit score before you are rented your accommodation. In a way, you may end up in a homeless situation, which is certainly not a good thing to come across your way. Keep one thing clear – instant loans are for people who can repay the loan instantly, and cannot be the choice for people who already are drooping their shoulders as the result of bad credits.

Problem#2

Loan Sharks – The FinTech market out there has plenty of loan sharks sitting under a cloak. They may offer you good deals on instant loans, even if you have bad credit report or you are unemployed, but those deals are not the deals in any sense. Loans sharks concentrate on phishing and nothing else. They want to extract your personal identity, and later use it for all those unscrupulous means. You may consider the loan sharks as your first point of contact, but then you will soon meet the satan behind the cloak. Try out once, if you really do not have any idea on it.  

Problem#3

Many Enquiries Made into your Credit History - 

In your past record, you may have gone through several unsolicited enquiries, of which you know very little. There can be a credit enquiry may take place, when you have the knowledge of it, or you may have an enquiry started without your knowledge. Your financial situation is going to be grim in both ways. These enquiries do not direct affect your score, but in case you get through an authorised credit check, this may start causing several problems one after another. 

Problem#4

Running into Debts – You may be indebted to someone for his good deeds, but in case of instant loans, debts have a bad affect altogether. Your probability to avail loans quickly may not be realised anytime soon. In a scenario where your debts have piled up, and your debt-to-income ratio, you cannot avail the loans. The reason is that when your debts are overwhelming, you become a risky customer for your lender as you can default anytime. High debts put your financial situation in obvious doubt.  Do not lose the options of borrowing. Make every effort to correct your debts.

Problem#5

Small Unpaid Debts – There may be a situation where small debts built up on your account may lead you to nowhere and your lender bluntly says NO to your request for instant loan. You may have forgotten to pay small debts, but the collection agency has not. The agency is going to keep the record of everything; all your non-payments too. Therefore, you cannot take small debts for granted on any occasion for the purpose of maintaining virtuous financial health. 

Problem#6

 Strings of Missed Payments in the Repayments of Loan – Missed payments are treacherous. If you have consistent history of missed payments, it is highlighted on the report, and your lender becomes aware of it immediately. He does not want to burn his hands by making an offer of instant loans.

Problem#7

Unemployment – Unemployment is similar to bad credit situation, and your lender will not be interested here too. He will not give you the benefit of instant loans, just because you do not have any regular source of income. All your efforts made here will not give you results. And in the situation, where you have the employment, but the salary is not high, lender thinks of you as an all time potential risk.  Therefore, make sure, when you are approaching the lender for instant loans, you should already have an employment in a high paying job.  

Problem#8

No Guarantor to Support – Though there are no guarantor loans available in the innovative and emergent FinTech markets, these loans will not come in nice and easy way in the situations where you have bad credit score, or unemployment, or unpaid debts or bills.  In all these situations, your lender wants someone to sign on the loan application, before approving an instant loan. The situation for no guarantor loan is only valid when all other conditions are in stable state.

Do Not Miss

Keep these seven factors in your mind, when you land in the financial technology sector and ask out for the funds through instant loans for unemployed and no guarantor claims. And to welcome good things in your life, make sure, you are not standing on the cornerstone or struck into some kind of financial gremlin, where there is no passage out.