Can I get credits if I have low income? Obtaining a loan always requires compliance with requirements, and although all the requirements are met, having a low salary or low income can be an impediment, depending on each entity.
Can I get credits if I have low income?
Many wonder how to get a low income credit . There are different credits, such as to buy a house, a car, for consumption or to start a venture. But having a low income can be an impediment in several cases, although some banks may be more flexible than others when it comes to lending money in the form of credit.
Before approving the loan, the banks carry out a background evaluation process that allows them to know if the borrower will be able to pay the requested amount together with the interest. Low-income people assume a higher level of risk for the bank, that is, they have a greater potential for non-payment, which means that if they are granted credit they must pay more interest.
Just as the bank may not trust a certain percentage of its customer in terms of repayment capacity, the customer who requested the credit can show the bank that he can trust.
High income or ability to pay?
Some wonder if what influences the bank to give them a loan is to have high income or ability to pay . Some point out that having a high salary does not influence, since the bank only grants the money that everyone can pay. The important thing is to show the bank the ability to pay.
Debt Capacity, how much should it be?
Some experts advise that the most “reasonable” debt capacity for a person is that which should not exceed 40% of their monthly income, at most. If they want to obtain a mortgage loan , the dividend should not exceed 25% of the rent and have a saving of 20% of the sale price of the house to cancel the foot. If they have a monthly income of $ 500,000, the level of indebtedness should not exceed $ 3,500,000 with monthly payments of $ 200,000. Obviously there are more examples than this.
How do income and work capacity influence?
Having a variable salary, no doubt that is a potential risk for the bank. If they have stable employment and a fixed salary they will have more capacity and chances of being granted credit. It is also possible that the level of income is not enough for the bank to trust, an option is to present occasional job tickets and serve to prove that they have extra income.
As long as they can demonstrate stable income or have a fixed salary, and job stability, what the bank will see is that they are responsible, reliable and that they can keep a job and that if they have changed jobs, it is not because they are a problem person.
There are periods of work termination in the employment history and that is also a potential risk for banks. Since if they have changed jobs every few months or year it can be a bad sign and if between jobs and jobs months went by, the bank will assume that in those months without employment they may not be able to afford the payment of the credit fee.
It is important if you apply for a mortgage loan, to be able to show the bank seniority of at least 1 year. To demonstrate job stability, they must :
- If they are dependent workers, they must present to the bank a copy of a fixed employment contract and last three salary settlements.
- If they are independent workers, they must present to the bank a demonstration of 2-year employment seniority. In this case it is at least 2 years of invoices.
Another capacity that the banks ask to show them is the equity capacity, which allows them to recover all or part of the money granted in the form of the credit that was, if the time came they could not pay, that is the possibility that the bank potentially You can exercise a seizure of property, for non-payment.
The assets are made up of all assets with monetary value in the name of the borrower, although in some cases there is the co-debtor, a guarantor who can present the debtor and that if the original debtor does not pay, the bank can initiate actions to the co-debtor. guarantor and seize it directly. The bank can seize vehicles, properties such as land or the current home where they live whenever the debtor.
As you can see, there are certain possibilities of obtaining low-income loans, but it will also depend on the type of credit, consumer loans imply less requirements and requirements than if they ask for a car loan or a mortgage loan.