Getting a CPF restricted loan is an exercise in patience and determination. If your name is wrong, financial institutions tend to look more closely at your request and analyze your profile much more thoroughly. This to see if it is safe to release the loan to you. But, there is hope! As bureaucratic as it may be, it is possible to get the restricted loan release.
There are several reasons why you should apply for a loan with a dirty name – taking a dream trip, starting a business, shopping, etc. But if you are already in this situation, the interesting thing is to focus on clearing your name once and for all. How about using this loan money to pay off your debts?
To make this request, the first step is to get organized financially.
What do you need this money for? You have no alternative but a loan? How much do you earn and how much do you spend? How much can you commit from this income and how long? Understanding your consumption profile helps you plan better, and when it comes to money, planning is everything.
Restricted Loan Documents
With that in mind, choose a financial institution that meets your needs, separate the documents and make your request. For this case, in addition to the “standard” documents, such as:
- Proof of address.
It is essential that you have proof of income – in the same plural. The more you can show that you can afford the loan installments, the greater the chances of the release happening.
Characteristics of the restricted loan
A disadvantage of applying for the restricted loan is that it usually comes with a not very profitable combo: high interest and few installments. The rates are around 18% off, a little more or a little less, depending on the bank you choose. In addition, the number of installments tends to be smaller so that the debt is settled as soon as possible. Since your finances cannot be used as collateral, the bank charges more and gives you less time to pay off as a kind of protection.
Which is the best option for me?
If you have decided to take out a loan to pay off your debts and lower the installment rates you already have, you have started well. The conscious borrower’s trick is always to look for the cheapest alternatives. So, it is much more business to exchange interest than you owe, which is very high in credit card and overdraft cases, for the lower interest of another type of loan.
Real Estate Refinancing
With the name restricted, some alternatives are better than others. If you can, get away from the personal loan, because interest rates are very expensive for those who are negative, and invest in refinancing. It is safer to offer some security as well as have access to the most palatable rates. If you have a repossessed property in your name, you can go the way of real estate refinancing. This alternative works mainly if you are looking for loans greater than $ 30,000. To know more details and answer your questions about this modality, take a moment here and we explain everything.
If you have put your bills on paper and have seen that you do not need such a high amount, then vehicle refinancing may be the best option. You need to have a car paid off and in your name. Also, it is good that you are up to 10 years old to interest the bank or financial. It also comes with collateral and facilitates credit approval.
But in all cases, you need to be aware of the installment due dates. If you are unable to pay or delay for 3 months, the bank can take your property to auction it and repay the debt! So stay tuned – and if, at worst, you realize that you won’t be able to repay any installment, talk directly to the institution and try a negotiation.
For withdrawals, INSS pensioners and civil servants, the payroll loan option also comes into the equation. As explained here, this type of credit is interesting because it has low rates and already removes the value of the person’s paycheck or benefit on the date they receive it. Thus, you already receive your rent without the value of the installation once it has already been debited. No more worrying about “paying the bill” or forgetting dates – payment is automatic. OpenCredit does not have this kind of service yet, but we offer all the information you need to pursue it wisely and confidently.
Having name restrictions does not mean that it is impossible to apply for a loan. By following the steps right, your chances of getting credit are excellent! We are here to help you with whatever you need. And don’t forget to tell us it worked out. Good luck!