Card loans are convenient financial products when you have sudden expenses or need a large sum of money. However, many people give up on card loans because they lack confidence in their credit screening process.
This article introduces several ways to find a card loan that can be borrowed even if you are not confident about the screening process.
Understand the screening criteria.
Credit card loans are reviewed primarily based on the following factors.
・Annual income
・Length of employment
・Current borrowing status
・Past credit history
・Stable income
Understanding these factors will help you determine some of your chances of being approved.
Annual income and length of employment are important factors that prove stable income. In addition, your current borrowing status and past credit history are factors that determine your ability to repay the loan.
The criteria for determining whether or not you have a stable income will vary depending on your employment status and type of work.
Each card loan company has different criteria, but in most cases, these factors are judged in a comprehensive manner.
Choose a free or unsecured loan.
There are three main types of card loans: card loans, free loans, and unsecured loans.
Card loans are convenient loans; if you pass the screening process, a card is issued and can be used at ATMs and for shopping. However, the screening criteria are relatively strict.
Unlike card loans, free loans are loans for which no card is issued. As a result, the screening criteria tend to be more relaxed than for card loans.
Unsecured loans are loans that do not require collateral. Therefore, even those who do not have collateral such as a home or car can borrow.
If you are not confident about the screening process, you can choose a free loan or an unsecured loan.
Compare multiple credit card companies.
Different card loan companies have different criteria, interest rates, and interest calculation methods.
Therefore, it is important to compare multiple card loan companies and choose the card loan that best suits your needs.
Interest rates and interest calculation methods vary widely among card loan companies. The lower the interest rate, the lower the interest expense.
The amount you can borrow and the repayment period also vary from one card loan company to another. Be sure to choose the card loan that best suits your needs.
Consider a bank-based credit card loan.
Banking card loans tend to have more relaxed criteria than consumer credit card loans.
This is because banks have a better understanding of their customers’ bank accounts and assets, making it easier to determine their repayment ability.
Bank-affiliated card loans also have relatively low interest rates.
Talk to family and friends.
If you are unable to get approved, one option is to ask a family member or friend for help.
If you can borrow from a family member or friend, you do not have to pay interest.
However, when borrowing money, be sure to make an IOU and establish a repayment plan.
Summary
Even if you are not confident about the screening process, the above methods can help you find a credit card loan that you can borrow.
When using a card loan, be sure to check the interest rate and interest calculation method carefully and plan accordingly.
