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Is It Possible to Repay a Microloan in Parts?

As a general rule, the usual chain of events for borrowers with a bad credit history covers the three stages: financial difficulties, debt restructuring, and bankruptcy. Thus, if bankruptcy can be advantageous to individuals who borrow significant amounts and those who do not own movable and immovable property, then for others, it may turn to be a big problem. Of course, it is always better to request small-sized payday loans that you can repay quickly instead of taking big amounts from banking organizations. What is more, you can always agree on the date and terms of loan repay.  

How Quickly Should a Microloan be Repaid?

Suppose you are a debtor who came to the bank with a request to restructure the loans taken earlier due to an objective deterioration in your solvency (loss of work, family circumstances, deterioration of health, or any other reason). What can bank clerks offer you in return?

  • Extending the loan repayment period without any additional interest. If this additional period is comparable in duration to the original for which the loan was issued, then the monthly amount paid to the bank will be significantly reduced.
  • Taking another loan to use for repaying your current credit. This decision will not solve your problems with debt, but it still it can give you some time.
  • Reduction in total debt as a result of recalculation. If you manage to convince employees of the credit department of the bank that you don’t have any material assets that could cover the debt, you have a chance that your debt is recalculated.

Problems with loan repayment delays can be prevented if you take online microloans. The main advantage of a payday loan is the flexibility of the procedure when you take and repay a credit. Thus, microloans can be repaid both in full or in parts. This detail is to be agreed upon your loan request. The only condition is that on the agreed day of full loan repayment, you need to pay the missing amount back.

How to Get Rid of a Microloan?

To repay a microloan and get rid of it forever, you need to cover both the credit amount and interest rate associated with it. This is not difficult at all, especially considering that you can pay it out ahead of time. Suppose that your financial situation improved earlier than you expected. You just need to repay the loan online – preferably in the same way and the same payment system you used to borrow money.

Is It Possible to Take a Microcredit from Several Organizations

American people cover some basic expenses with short-term loans. These borrowings are very important to them. They help a lot in the time of financial troubles. Some borrowers think that it is possible to take a payday loan only from one financial institution. It is not the case. One can take several payday loans.

Several Credit Providers

Microcredits are issued to people of the full legal age only. A person can get several microcredits. There are no limitations. It is important to remember several rules if one takes credits from different providers:

  • If one applies for another microcredit, he/she has to state how many credits he/she currently has. It is important not to hide this information. In case one hides this fact, a financial organization can sue him/her. Financial companies need to know how many microcredits a person has. This information helps them to evaluate the risk of loan issuance. If a person has several credits, the chance he/she will return money back is not that big.
  • One has to take moderate borrowing from financial companies. The sum of financial loans fluctuates from 300 – 1900 dollars. It is not a good idea to ask for a maximum amount. An interest rate then will be higher. There is a high chance a person will not be able to pay credits on time.
  • If one pays several microcredits timely, the financial score will get higher. A credit score is a very important characteristic. It shows how well a person is able to pay borrowings back. Short-term credits give excellent opportunity to top up a score. In case a person has a high score, he/she can get a big long-term loan.

These are the main things to remember. Taking several microcredits is very beneficial. If one wants to receive 1800 US dollars, it is good to take three microcredits. In this case, one will be assigned three return dates.

It is always good to remember about return dates. It is a date when a borrower has to pay a credit back. If he/she does not do it, he/she will get in trouble. A lending company will penalize a borrower and it will be necessary to pay a body of a loan, interest rate, and fine.

Some borrowers worry their employer can learn about microcredits they take. Employers will not know a person takes one or several credits. In case a person does not pay a microcredit back in time, a lending company can take the salary on its account. If this happens, an employer will get to know about a borrowing.

One can take several credits without the problems. It is always good to read a loan agreement the financial company proposes. Some lenders state they will not issue a loan to a person who has several microcredits. In such case, one cannot apply for a microcredit. Taking numerous microcredits is not forbidden, the most important is that one pays the loan back timely.