The microcredit company FinaGuru issues short-term and long-term online loans to individuals. The organization does not have a branch network; it operates remotely via the Internet.
Creditnice is a microfinance company operating since 2013. It specializes in loans with online processing, including to pay for purchases from partners; it also issues virtual credit cards and provides credit lines.
Take out a loan to correct your credit history
Taking out a microloan is one way to influence the quality of your credit history. This can help in the future to obtain a loan on suitable terms and get money for planned expenses. This option is suitable for borrowers who have fallen into arrears and need to correct their data.
The procedure depends on how badly the CI is damaged. If it contains one or more small arrears that have already been repaid, you can simply take out a regular microloan. MFOs are loyal to such clients and rarely refuse to issue a loan. In such a situation, it is most profitable to take an interest-free loan. To do this, you need to contact a company that offers preferential terms for new clients.
It happens that there are more serious problems in your credit history. For example, a current overdue debt or a closed long-term arrears of 90 days or more. In this case, it is better to use a special financial recovery program.
This service is available in some microfinance organizations. Its essence is to draw up a step-by-step plan for the client, in which each stage is the issuance and repayment of a loan. In addition, in an ordinary situation, any lender will refuse a borrower with such a background, and the application will be considered under special conditions.
When trying to correct your credit history, you must not forget about scammers who offer to completely rid the client of bad records for a fee. This is impossible. All information submitted to the credit bureau is stored for 10 years.
The recording can be erased only after the dispute procedure, if a real mistake was made, which is confirmed by the relevant documents. In other cases, you can only smooth out the situation by repaying the debt on new loans or credits on time.
When considering a loan application, a bank or microfinance organization pays attention to the latest records in the financial register, on average for 2–3 years. Therefore, if the delay occurred several years ago, and in the last year the borrower took out and repaid 4 loans on time, the chances of approval of a new loan or loan are very high.
Advantages
Applying for a loan online without visiting the company’s office
Consideration of the application on the day of application
A loan to improve CI is credited to the card instantly
To take out a loan to correct past arrears, all you need is a passport
The borrower has minimum requirements
It’s easy to return a small amount on time
Flaws
Not all microfinance organizations work with problem clients and offer assistance in improving the quality of life through a loan
Not every credit history can be corrected in this way; with serious violations, a new loan will not be approved
How many microloans are needed to improve CI?
One loan to improve CI is not always enough. It is better to draw up several contracts with a short time interval. It is important to repay the money on time, avoiding the formation of overdue debt. The number of microloans needed to correct the situation depends on how damaged the credit history was.