Various loan products are becoming more and more accessible today, especially as their popularity grows. Quick loans and micro-loans allow you to quickly solve urgent financial problems with a minimum package of documents and requirements for the borrower.
How old are they giving credit for?
There are different restrictions on age for different banks and microfinance organizations – both for the upper and lower age limits. Most organizations are reluctant to lend to young people. This is due to several factors:
- Military duty, which most young people fall into, especially between the ages of 18-21.
- Training in higher and secondary schools.
- Lack of constant work and, accordingly, stable earnings.
- Age-related non-serious attitude of young people to their loan commitments.
However, even if an eighteen-year-old young man is employed, it will not be easy to borrow. This is because when deciding on loans, the bank’s security service or automated system not only takes into account the age and availability of income, but also the credit rating, which we will discuss below.
So, since 18 years it is possible to take a loan only in some banks . They offer reasonably priced consumer loans without guarantors. But in practice you can usually get approval only for small amounts. The most common obstacle is the lack of credit rating and / or formal employment.
Many banks provide consumer credit only to young people over the age of 21 or set even more stringent requirements – from the age of 23. Some credit institutions have different age requirements depending on the borrower’s gender. For example, girls are given a loan from the age of 18, and boys – from 21 (or older). This is due to the fact that at the age of 18, many girls are already getting married and building a family. Therefore, they already have financial security and are more responsible to their obligations.
Special Credit Products
Many banking organizations are more willing to provide non-consumer loans to citizens than 18, but other credit products, such as cards. Such a card usually has a certain limit, determined by the solvency of a particular client and a grace period during which money can be used without interest.
If you talk about other special offers, such as mortgages and car loans, they are usually issued from the age of 23 – even if a different age requirement is set for consumer loans. This is due to the fact that the amounts of such loans are large, and the loans themselves are usually issued for a long term and have a reduced interest rate. To protect themselves as much as possible, banks are insured, focusing as much as possible on the choice of clients to their level of solvency.
How old can you take a loan with a bad credit history?
We mentioned above that credit rating is one of the main parameters that banking institutions are guided in making loan decisions for each individual borrower. In fact, age limits are not so much related to the age itself, but rather to the client’s credit history. A young man simply cannot have a positive credit rating at 18 because no one has ever given him a loan.
Credit history is formed on the basis of information on previously taken loans. If the borrower has no arrears and late payments, he or she will have a positive credit history. If the client has outstanding loans and / or late payments, the credit rating will be negative and the likelihood of a positive loan decision will be significantly reduced.
Is it possible to earn a good credit history for a student aged 18-21? All right. To do this, you need to take a loan and repay it exactly on time – without delays and debts. But how to do this if banking organizations are very reluctant to lend money to young people? Applying to Microfinance Organizations (MFIs) is the best solution.
How many years have they been lending to MFIs?
Unlike banks, microfinance organizations are more loyal to their customers. Therefore, you can get a loan there from the age of 18. And, even without a large package of documents, collateral and guarantors. Usually, a passport, a taxpayer number and a card of any Ukrainian bank to which the funds will be transferred are sufficient for registration. The procedure itself takes no more than an hour, that is, you can get money already on the day of circulation.
Features of MFI lending
The main difference between microfinance institutions and banks in the short-term lending. MFIs issue small amounts of debt (up to several tens of thousands of dollars) and only for a short period up to one month. That is, such a loan option is suitable for solving urgent financial problems when money is urgently needed to pay, for treatment or for a small loan for education.
The system of repayment of microcredit can be different. Most often, the entire amount (including interest) is paid immediately – at the end of the loan period. But there may be several partial payments. In the absence of money to repay the loan, you can always prolong. Advantages of microcredit:
- Possibility to apply for a loan from 18 years.
- Minimum package of documents for crediting.
- Simplicity and speed of loan design.
- Possibility of multiple extension of the loan agreement.
- Online decorations – online.
- Receiving money by bank card, account or online transfer system.
- Absence of penalties and overpayments in case of early repayment.
Microcredit is convenient for young people for two reasons. First, it will be difficult to get a loan from a bank. And the amount of micro-credit is quite sufficient to solve the urgent everyday tasks: buying a phone, paying for school or accommodation, buying products or clothing, treating or repairing a car, etc.
Secondly, microcredit is a simple and real opportunity to correct, earn or raise your credit rating. The fact is that all information on borrowed and repaid loans in the MFIs is sent to the credit bureau (CBS) and stored there. When considering loan applications, banks turn to BCI. A positive rating significantly increases the chance of approval.
Online lending service makes it easy to make and receive. You can go through the whole procedure – from the application to the approval and the transfer of money on our official website. To become a borrower, it is sufficient to meet the following simple conditions:
- Age from 18 to 65 years.
- Citizenship .
- The presence of a source of fixed income.
From the application documents you only need a passport. His scan or photo must be attached to the application. Formal employment for a loan is optional. To confirm your solvency, it is sufficient to indicate the size and source of fixed income.
Contacting our service is an opportunity to get credit for students, servicemen, the unemployed – all those categories that banks usually refuse. In addition, this loan will be convenient for citizens living in small provincial cities, where there are no branches of large banks and MFIs.
You can apply and receive money after approval here in just 30 minutes without leaving your home – from any gadget with Internet connection support. The money goes to the borrower’s card, specified at the time of application. It is important that the bank card itself is issued to the applicant.
A quick online loan is useful if you want to build a positive credit history or correct it. Just form a few microcredits and pay them off. You will then be able to reach out to those age-appropriate banking organizations. Try our service and see for yourself its simplicity, convenience and reliability!