How to borrow on credit. Refinancing
If you took out a Bank loan, but are unable to repay it, do not panic. First you need to carefully study the information on how to take the credit for the loan. It is sometimes advantageous to take out a new loan to repay the previous one, than to pay penalties and high interest rates.
What is refinancing
Refinancing is a lifeline for those who took Bank loans, and cannot pay it on time. To pay off your debt and avoid paying fines, you can apply for a loan in other organizations. Sounds tempting, isn’t it?
But there are pitfalls. If you have chosen to bind themselves by a new loan, you should pay attention to the following nuances:
- Many Russian banks have developed special programs refinancing. You are not the first and not the last, who is in dire need of money to pay off existing debt. Examine the plans for refinancing different banks, find out which option is most suitable for you
- Often loans for refinancing are not on hand, and paid by Bank transfer to your specified Bank. This is a very convenient scheme, you will only have to repay the loan, which was taken last. Check if there is any item in the program of refinancing of the financial company to which you applied
- Before you apply for a new loan, make sure that the Bank offers convenient terms for repayment of the loan. The delay on the second loan is not allowed, so select the interval between payments, which will suit you. Refinancing is a great way to increase the maturity of the debt, remember this
A list of documents
So, if you decided to go to the Bank to draw refinance, in advance take care of all necessary paperwork:
- The contract with the Bank where you were issued the credit
- A detailed statement showing the amount of the remaining debt
- Documents about your income – help pit-2
- Copy of employment record, certified by the personnel Department
- The exact schedule of financial payments
- A copy of the passport of the citizen of the Russian Federation
- If you have a prenup, you should bring it original
- Diploma of education
What to do if you are overdue
If you are not able to arrange refinancing and delayed some payments to take out a loan for the loan will be quite difficult. Overdue credit – a dangerous situation, banks are distrustful of customers with bad credit history.
- Provide the Bank with valid reasons why you missed payments. Perhaps you were in the hospital or you have detained a salary. Locate necessary documents (help with clinics, receipts from payroll) and tell details, Bank staff may meet you
- Take the second loan at a large interest, often such loans are issued only upon presentation of a passport. But this option should only be considered in extreme cases, as microfinance institutions establish unprofitable customer rules
- Contact the Bank that issued loans to people with bad credit history. There are many organizations, but they are. In this case, banks impose strict conditions for lending. But the cooperation with these banks much more profitable than the rapid clearance of the loan under the predatory interest that will deprive you of all the money earned
If you chose the latter option, be prepared for the fact that the Bank will offer a higher interest rate and short time payout. Also employees of a financial company in which you applied, you may be asked to lead and guarantors to provide equipment for collateral. In case if the loan is not paid, it will belong to the Bank.
Before you go to the Bank for a loan, you have to look at your financial situation and give an answer, will you be able to extinguish it. If you have already taken a loan and not able to pay, think about the refinancing program.