When I started my business, I also needed capital, so I used to go around websites that specialized in capital mobilization, consumer lending … things.
Recent years are the golden time for unsecured loans, so a series of banner ads, Google Ads, and text messages come to me.
Because I am young, I do not have fixed assets such as a red book, real estate or a car, life insurance … in order to get a mortgage loan at a bank as a tradition, so I have to look under ” a sub-branch of credit, which is: “unsecured credit“.
#first. Big names
FE Credit, HomeCredit, Mirae Assest, … surely when you learn these names, most of you will see some bad news on the first pages of Google search, like “gangster debt collector” or ” the borrower committed suicide because he could not pay “, …
The news was quite shocking, and after a while of research, I concluded (in the past, because now credit in Vietnam is quite clean) then all 3 parties are at fault:
– Lenders: Reckless review, even for people who lack the ability to pay loans, be overtaken by fake records, ambiguous interest calculation policy makes it difficult for users to imagine, …
– Borrower: being blurred by advertising, borrowing money with an incentive to burst money, not buying loan insurance, …
– Authorities: a few years ago, the management recognized “hot loans”, “black credit“I feel not good, on the street I see a lot of leaflets” financial support – instant disbursement “full of electric poles, walls.
But at present, with new laws that make “bad” lenders no longer have land to live, mainstream credit companies are stricter and more financially transparent.
Specifically, the National Assembly passed Law on Investment No. 61/2020 / QH14. Accordingly, the debt collection service was banned.
Imagine who borrowed money from you, then five times, seven times of deferred payment, what would you do? Also frustrating. So the question is, what do financial companies do when debt collection is banned?
- The lender will take action to court.
- Denounce to the competent police agency (ward CA, commune CA, district CA …).
As for the borrower, how will it behave?
First, you must confirm one thing: You must be responsible for paying on time, absolutely no intention of breaking money, debt … OK!
In the case when the payment is due and you cannot afford to pay it, write a letter of relaxation (show the reason and commitment) to send it to the finance company you borrowed.
This form is extremely important, it will be court evidence. The application should be in writing (either handwritten or typed). Because if by other forms such as email, phone call, texting .., it will not prove anything.
If the finance company understands, they will not sue again and will stretch your debt, otherwise, they will not accept the petition or make it difficult – intentionally making it difficult, you will still have a license when you go to court. proof to prove to the court.
#2. Baggage when borrowing unsecured credit
– Determine that unsecured loans are high interest: if you have a red book plugged in (Mortgage), no one has to worry about you having to pay off your money, not to hire a verification officer, to urge debt collection things, that’s another story!
– Must have a job, have income: put aside black credit, credit companies often advertise: 10 minutes of application approval, no income proof, no phone call, … But in reality (especially in the difficult economic situation of Covid-19 now) they will inquire carefully about your job, income and ability to repay, at least your motorcycle.
– Interest calculation and loan term calculation: There are 2 types of monthly interest: flat interest and interest to pay both principal and interest that the company will announce, you can be assured because these 2 numbers are similar, the difference only occurs. when you borrow too long time only.
Note that the longer the loan term, the easier it is to breathe, but the more interest will be. For example:
# 3. Forms of unsecured credit
– Cash loan: This is a very popular form, everyone knows, you contact the credit company to borrow an amount of money for a period of time, then pay both principal and interest every month, …
There will be an operator to advise you, then local staff will come to see your documents in person and make your application, finally, the appraisal department will review your credit / bad debt score and contact Contact your relatives to check if your career is right or not, the loan is used for the right purpose.
– Installment purchase: you out Mobile World, FPT Shop, Green Electronics, … Buying installment items through credit companies is like you are taking unsecured loans.
By month you can go to the counter, or to the bank, or even use the Mobile Banking app to pay off that installment loan.
– Open a credit card: The card that the bank will give you a limit on the card (depending on your monthly income), as well as depending on your level of “level”.
A credit card is a credit card prepaid postpaid without a mortgage, and the bank will rely on your reputation to issue you a card worth 3 times your salary. That is in theory!
And if you save at that bank with a large amount of money, or somehow that bank knows your reputation, they will grant a much higher limit (several billion also).
There are two types of credit card: Debit Card (like ATM card, with money to spend) and Credit Card (credit card, spend first – pay later).
After “swiping the card” to buy things, you have about 45 – 55 days (depending on the bank) to transfer money to pay the debt to the card without losing interest, if you do not pay on time, you will receive a statement of debt and interest. high.
Late payments have high interest penalties, and if you pay a portion of the debt, the balance will still be charged until you pay it off.
You can withdraw cash at an ATM using this card, but be aware that the withdrawal fees are high and the monthly interest rates are very high. YOU SHOULD NOT WITHDRAW MONEY FROM CREDIT CARD. Interest rates can be up to 20-30%!
# 4. Take responsible loans and pay on time
Credit companies are constantly competing, offering loans with attractive interest rates, fast, compact, easy control right on the mobile App – to help you be proactive in all situations.
Remember to take advantage of the credit credit tool to develop your job, financial ability, later with a large asset, you can easily convert to a “mortgage” loan at a very gentle interest rate, your feelings. .
Always remember to pay interest on time to avoid penalty interest as well as a stain on your credit score (which is CIC will keep in your profile for the rest of your life).
Do not let your credit score low, at that time no banks “play” with you anymore. You will not be able to borrow any more banks. Remember !
A final note is that credit companies do not collect application fees (if any, it will be tens of thousands), do not charge appraisal fees, do not allow to pay a portion of the debt in advance / or pay early due to any individual both!
Please contact us directly company switchboard number and only work with the staff that the switchboard confirms, avoiding financial fraud as well as valuable papers. Don’t be foolishly fooled 😀
Yes ! Above are some of my perspectives on “credit” in Vietnam in this year 2021. How about you?
Edit by Kien Nguyen