There are several alternatives to consumer credit for borrowers who do not have an official place of work or other legal sources of income. They can:
apply for a credit card;
buy goods in installments or in shares;
secure a loan with collateral;
confirm income with a bank statement.
Use a credit card
The requirements for credit card holders are lower than for consumer loans. They have a grace period during which borrowed money can be used without paying any interest. The main thing is to pay off the debt on time. Like debit card holders, they can take advantage of bonus programs, discounts, and cashback.
The disadvantages of credit cards include a small credit limit, especially cambodia mobile database for new customers. But if you actively use the card and maintain repayment discipline, the limit can be increased over time.
Buy goods in installments or in shares
This is a popular way to buy consumer goods, especially expensive ones: furniture, computer and household appliances, building materials. You can arrange an installment plan or purchase goods in installments directly in the store, including for orders placed online.
Disadvantages of the method: not all goods can be purchased in installments, the price of goods sold in installments may be too high. The purchase limit is small and usually does not exceed several tens of thousands of rubles. The installment period is up to 12-24 months, and when paying in installments it is only a few weeks.
Take a loan on security
One way to reduce the risk of non-repayment of a loan for a bank is to issue collateral as security for the fulfillment of obligations under the loan agreement. Liquid assets that can be sold, such as real estate or cars, are taken as collateral. Having collateral increases the chances of approval of the application. The loan amount may be larger and the rate lower.
Risk for the borrower: if the loan is overdue, he may lose the property transferred as collateral. In addition, there are frequent cases of selling the collateral property at a price below its market value. Banks include these risks in the adjustment coefficient, calculating the ratio of the possible loan amount to the value of the collateral property with a discount. Usually, the loan amount does not exceed 70-80% of the value of the collateral.
Confirm your income with a bank statement
If you have money but cannot confirm the source of its receipt, you can deposit it into a bank account and provide a bank statement to confirm your solvency. Having money in the account will increase the bank's trust, and with it the chances of approving the application. An additional bonus may be an offer of better credit terms.