1. Will being sued for owing money affect the loan?
It is reasonable to say that debt settlement will not have much impact, but it must be judged according to the specific repayment situation.
1. Some people will not have a big problem in paying off after being sued by the court. However, because the overdue records on credit information will not disappear immediately, for example, people who are overdue for three times and six times cannot get loans within two years, especially for banks or licensed financial institutions, they will not lend money to black credit information users. Without the advice of three times and six times, there is still hope for credit information.
2. For example, some people were sued and decided that they didn't repay the loan within the given performance period, and as a result, the bank applied for enforcement. The assets in their names are used for repayment after being frozen by the court, and they can refuse to execute them. The credit report joint record will display the enforcement record. Although it was finally paid off, the execution record will be kept for 5 years before it can be eliminated. Even if it is not a black credit account, it is difficult to borrow money.
Second, what should I do if the loan is rejected?
1, repair credit record
If a loan is refused because of a bad credit record, the first thing the applicant should do is to repair the credit record.
Credit card usage records and loan records will be constantly updated. If you keep a good credit record, the good credit record will cover up the previous bad credit record, so the role of the previous overdue record will become less. Moreover, when applying for a loan, banks and some financial lending institutions will only check your credit records in the last two years, so as long as you keep a good credit record for two years, those bad records two years ago will have no influence on your loan application.
2. Change the loan method
If the loan is refused because the debt ratio is too high or the income is too low, the applicant can change the loan method and replace the credit loan with mortgage loan and secured loan.
Because credit loans rely on personal credit records without any mortgage or guarantee, banks and lending institutions bear greater risks, while mortgage loans and secured loans are different. If the applicant provides collateral or guarantor certificate, banks and lending institutions will feel less likely to repay the loan, because even if the lender fails to pay the loan, banks and lending institutions can still obtain repayment by auctioning collateral or looking for a guarantor, so even if your income is low and your debt ratio is high, banks and lending institutions have great opportunities.
3. Complete the application materials
If the loan is refused only because the application materials are incomplete, then the problem will be easily solved. As long as you fill in the information and don't cheat, you will naturally pass the loan application again.
Legal basis: Article 11 of the Interim Measures for Personal Loans An application for personal loans shall meet the following conditions:
(a) The borrower is a People's Republic of China (PRC) citizen with full capacity for civil conduct or an overseas natural person who meets the relevant provisions of the state;
(2) The purpose of the loan is clear and legal;
(3) The amount, duration and currency of the loan application are reasonable;
(4) The borrower has the willingness and ability to repay;
(5) The borrower's credit status is good and there is no significant bad credit record;
(6) Other conditions required by the lender.