One of the basic rules in the financial world is that the total debt of a client should not exceed 50% of his/her monthly income. Otherwise, the client may find it difficult to pay all the liabilities and the lender may lose the money. If these are small loans, then nothing prevents the borrower from arranging them at the same time.
More Money, Different Agencies
- If there is no time and desire to deal with a bank, then you can consider the services of the MFOs. Alas, they give out only small amounts, but they don’t pay attention at the bad credit history. Before applying for the next loan, we recommend that you calculate the full amount of the loan, along with all the additional expenses and your financial capabilities.
- Remember that you will need to pay separately for each loan repay delay a daily penalty. Usually, it is a fixed percentage of the full amount of the loan. We advise you to calculate how much you will overpay for one loan and how much for several in case of not meeting the deadline.
- Some major players sometimes do not approve additional loans from their office. Get the next loan will be possible only with the payment of the previous one. But they are quite loyal to payday loans from other market players and will give you money without a question if they consider that your solvency will be enough.
Build Your Strategy
- One of the important tips would not be to contact several MFO’s at the same time. All refusals and approvals are also recorded in the credit history. If it becomes known that you applied to several financial companies at the same time and received a refusal everywhere, then the latter company will most likely refuse you too. Not because of a specific reason, but due to the fact that everyone else did this, there may be something wrong with the documents and this is a risky client.
- If the situation has already happened: you turned to several services and were turned down everywhere. How to proceed? We recommend next attempt in 2-3 months.
- There are reverse situations. It is quite logical that the client wants to check the terms of several vendors before making his/her choice – perhaps the competitors will have a lower interest rate or it will be possible to bargain some bonuses.
Before making a final decision we advise you to consider all the pros and cons. After all, for each service, you will need to pay separately. To avoid falling into the debt trap, you must understand the size of all money to return. In a critical situation, you can ask a certain company to issue a debt restructuring, but keep in mind that not all MFOs will do this. Be wise and intelligent, rely only on yourself.