Question from a reader:
I am working part-time with an annual income of 1.3 million yen. Currently, I have borrowed 200,000 yen from one company, and when I applied to Aiful yesterday, I was approved for a limit of 200,000 yen. I would like to borrow 300,000 yen if possible, but will applying to other companies lower my limit with Aiful
or make it unavailable?

Considering the Impact of Borrowing Limits and Applications

Hello! Today, I will answer a question from someone working part-time with an annual income of 1.3 million yen. I want to discuss the borrowing limit, particularly the impact after applying to Aiful. As someone working in the entertainment industry, I understand the importance of having a stable income and how valuable financial knowledge can be. Let’s get right to the question.

About Borrowing Limits

First, you mentioned that you were approved for a limit of 200,000 yen from Aiful, which is a starting point. The borrowing limit is determined by financial institutions based on your creditworthiness and repayment ability, making it a very important factor. Next, you may be wondering, “If I apply to other companies, will my limit with Aiful decrease?” The short answer is that applying to other companies could potentially lower your limit with Aiful. There are several reasons for this.

Checking Credit Information

Financial institutions check your credit information each time you apply. This includes how much you have borrowed, whether you are behind on repayments, and your application status with other companies. For example, if you apply to multiple financial institutions in a short period, it may give the impression that “this person is in financial trouble.” A few years ago, I found myself in urgent need of funds and hastily applied to several consumer finance companies. As a result, my credit information was negatively impacted, and I was unable to borrow the amount I had hoped for. Through that experience, I realized the importance of staying calm and acting thoughtfully.

The Relationship Between Aiful and Other Applications

In the case of Aiful, their screening criteria may differ from other financial institutions, but they generally refer to similar credit information. Applying for new loans could lower Aiful’s trust in you.

Total Borrowing Amount and Repayment Ability

Next, you should consider the total borrowing amount and your repayment ability. Given your annual income of 1.3 million yen, it is essential to understand what percentage of your income the monthly repayment will occupy. As your borrowing increases, the burden of repayment will also increase. Even if you can borrow 300,000 yen, you must consider how it will affect your repayments, as it may not necessarily be a positive outcome. I once made a significant borrowing decision and ended up overwhelmed by monthly repayments, regretting that I should have thought more carefully. Therefore, I recommend having a solid repayment plan before increasing your borrowing.

The Importance of Planned Borrowing

Now, what’s crucial here is to “borrow with a plan.” While there may be times when you need to borrow money urgently, it’s vital to always assess your financial situation before taking action.

Points to Consider When Considering Borrowing

1. Clarify your purpose: Determine why you need the money. Whether it’s for unexpected medical expenses or living costs, or for a hobby, your priorities will change accordingly. 2. Create a repayment plan: As borrowing increases, so will the repayments. It’s important to plan within a range that doesn’t exceed a manageable percentage of your income. 3. Consider multiple options: If you are thinking about borrowing from multiple financial institutions, it’s essential to compare the conditions of each. Flexibility in seeking better terms rather than sticking to one company is also necessary. 4. Imagine life after repayment: It’s important to think long-term about how you will live after borrowing. Make sure you can clearly envision how to manage your living expenses.

In Conclusion

I have conveyed the importance of acting cautiously regarding borrowing from Aiful and applying to other companies. I believe that financial knowledge is a significant asset in supporting your life. Especially in the entertainment industry, managing money amid unstable income is crucial. Finally, borrowing comes with responsibilities. While borrowing money can ease your financial situation, the repayments can also create new stress. Always strive to act calmly and thoughtfully. I wish for your finances to be healthy and for you to lead a fulfilling life!