A request for an extension of a loan repayment period though not favourable is always a better option for individuals with bad credit loans. More often than not a loan extension period will help one to try and put his finances together so as to be able to meet the existing debts. It’s usually used by individuals who want to stay afloat during tough times.
As a means of avoiding being declared bankrupt, people opt to extend the repayment period as this always reduces the monthly payments. These reduced payments are affordable to the applicant and therefore when made on time an improvement on his credit score is seen.
There are many factors or cases that more often than not end up making people request for a loan extension period. Some of these reasons are genuine while others are own made. For instance when the debtor loses his job and therefore it becomes hard for him to make repayments as earlier agreed then an extension period can be requested for. This period is to help the individual get back to his feet in terms of getting another job. Additionally, other people who have undergone divorce and have experienced a split in their property may find it hard to pay the agreed upon amount monthly and therefore end up requesting for a loan repayment extension.
Another genuine case that more often leads to requesting for an extension of repayment period is the when the financer of the loan is unable to do so because of sickness, or accident that makes him unable to work. This is a reason that will allow the lender to give financial relief for a short time then repayment starts. Worth noting is the fact that other reasons like being in possession of bad credit history will not always guarantee an extension. During extension people need to know that its only the principal amount that is extended. Interest on the loan has to be repaid as agreed.