Multi-head lending refers to the operation of borrowers applying for loans at two or more financial lending institutions.
For example, Xiao Zhang applied for a loan on platform A, and then applied for a loan on platform B because of financial problems, but the loan was not enough, and he applied for a loan on platform C, so Xiao Zhang applied for more online loans and there was a phenomenon of "borrowing more".
This situation is mostly manifested in online lending platforms. If you apply for more online loans, you will see your credit score in the big data query and whether you have long-term borrowing behavior.
The data of long-term loans are generally big data crawled on the Internet, including your credit status and borrowing behavior. If there is a long-term loan, you can see it in the corresponding credit report, which is the loan situation of those platforms.
According to the data survey over the years, the credit overdue risk of multi-borrowers is 3-4 times that of ordinary customers, and the default probability increases by 20% every time a loan applicant applies for another institution.
The reason is that some groups have "lending" behavior, increasing new large consumption, and the principal plus interest leads to the continuous accumulation of debts. When the repayment capacity is exceeded, you can only choose overdue. However, a large number of overdue loans have spawned violent collection by some informal lending platforms.
It is necessary to prevent the phenomenon of "borrowing more and paying more", not to apply for too many online loans, and not to have similar situations such as "supporting loans with loans", "replacing old ones with new ones" and "robbing Peter to pay Paul", otherwise it will be difficult to land in the future.
So, what about personal long-term borrowing?
First, adjust the mentality and actively respond.
The face is still to face, debt can not continue to accumulate. In the face of repeated loans, we should adjust our mentality and face the current predicament bravely and positively. Attitude is very important when dealing with multiple personal loans, and honesty is its basic principle.
Second, according to the nature of the loan.
The principle is to deal with high interest first, then low interest, and finally personal interest-free loans.
Third, use interest-free to offset interest.
Ask parents, friends and relatives for money, and you can get rid of all the principal and interest. Things have come to this, don't care too much about face.
Fourth, choose to go to a formal institution.
If you need money urgently, you should also choose a formal institution, which can provide you with a professional loan scheme and a bank channel suitable for you, so as not to fall into a vicious circle of repaying loans with loans.
5. Make money to pay off debts.
You must pay your debts. For the remaining real debt, you have to find a job to make money and pay off the debt through legal channels. If you don't go to work, you will be in debt even if you don't owe money now.
Now more and more advanced consumption concepts are deeply rooted in the minds of young people. Regardless of individual repayment ability, there are many phenomena of borrowing at will. After the loan expired, they were unable to repay it. Usually they rob Peter to pay Paul and borrow more money. As a result, personal debts continued to accumulate, and finally the pressure was too great to breathe. It can't be ignored that individuals have generated extra loans. The above is the solution summarized by Migu. I hope I can help you!
Related Q&A: Related Q&A: There are too many applications for online lending platforms. Does long-term borrowing affect credit reporting? At present, many online lending platforms will conduct credit reporting. If there are many applications, it will definitely be shown in the credit report. The applied amount will be recorded in the credit report one by one, and those that have not been applied will be displayed in the credit inquiry record. Whether you apply or not, it will have an impact on personal credit information.
Now the loan business has spread from traditional commercial banks to cash lending platforms, and shopping by stages is nothing new for most consumers. Generally speaking, the behavior that the same borrower puts forward loan demand in two or more financial institutions is called "multi-head lending". Relevant surveys show that more than 50% users have long-term lending behavior among small cash borrowers.
There is nothing wrong with long-term lending itself, but it is risky. Some long-term loans have credit risks, such as borrowing new loans and repaying old ones, while borrowing a lot of long-term loans. Generally speaking, when the borrower has a long-term loan, it shows that the borrower has great difficulties in capital demand and has reason to doubt its repayment ability. At the same time, there is the possibility of "robbing Peter to pay Paul".
Once borrowers borrow from multiple sources, the main impacts are as follows: Although many private lending institutions are not as qualified as banks, they all have credit demand. Once in loans overdue, everyone's overdue records will be uploaded to personal credit. If you break your promise, the consequences will be very serious. Presumably, the friends themselves know it.
Even in the end, you may face violent collection. As we all know, the hidden danger of private lending has always been violent collection, especially now that the online lending market is so hot and the collection methods are unpredictable. Major news media have reported many times that after loans overdue, the normal life of borrowers was almost completely destroyed, and even relatives and friends would be implicated.