In banking we know that bank consider about debt burden ratio before giving a loan. How to calculate it? All of your monthly debts are divided by monthly income. Loan with debt burden ratio under 50% will be approved by bank. Loan with debt burden ratio 50% will be considered by bank. Loan with debt burden ratio above 50% will be rejected by bank.
For instance your monthly income is $1,000 and your installment loan in first bank is $100 per month. You plan to get another loan from second bank with installment loan $300 per month. So your total installment loan per month is $400. Calculate your debt burden ratio $400: $1,000 then times with 100%. You will get 40%. It means your debt burden ratio is under 50% and your loan is approved. With these debt burden ratio systems, bad credit customers can’t get loan. You still can get bad credit cash advance by applying online loan. Although your debt burden ratio is more than 50%, they still can give approval.
If your monthly income is at least $1,000, have active bank account and permanent job, you can apply online instant payday loans. No matter how high your debt burden ratio is. You deserve get a loan.